Posted on 25 Apr 2023
China's imports of ferrous scrap maintained the fast on-year growth in the first quarter of this year - the total volume reached 166,070 tonnes, soaring by 115,789 tonnes or 230% compared with the same period last year, according to the latest statistics from the country's General Administration of Customs (GACC).
Japan remained China's largest ferrous scrap supplier, which contributed 80,349 tonnes or 48.4% of China's total scrap imports during the first three months, the GACC data showed.
And for March alone, China's scrap imports registered 56,327 tonnes, up 1,925 tonnes or 3.5% on month, according to the GACC statistics. However, the import volume from Japan decreased further last month, or having dipped for the fourth straight month by another 1,921 tonnes or 7.3% on month to 24,598 tonnes, mainly because Japan's export prices of scrap were higher than those of China's domestically-generated materials.
For example, by end-March, China's spot transaction price the 6-8mm common-grade carbon steel scrap in Zhangjiagang in East China's Jiangsu province was assessed by Mysteel at Yuan 2,810/tonne ($408/t) excluding the 13% VAT, while Japanese prices for HS scrap hovered at $450/t CFR, according to Mysteel's data.
China's ferrous scrap consumption increased last month, as most domestic steelmakers including both blast-furnace (BF) and electric-arc-furnace (EAF) mills ramped up production given relatively healthy profit margins they could earn on finished steel sales, and also due to the expectations for better demand from end-users during the country's traditional peak season for steel consumption over March-April, Mysteel Global noted.
Mysteel's weekly survey among the 87 sampled EAF makers nationwide showed that their capacity utilization rate rose steadily to touch an 11-month high of 68.18% over March 24-30, up by 10.24 percentage points from one month before.
Source:Mysteel Global
