China Increases Ferrous Scrap Import from Japan

Chinese ferrous scrap import surged from Japan. The import increased by 22% to slightly less than 100,000 tonnes at the main importing port of Zhangjiagang, Jiangsu in February from January and jumped to 256,900 tonnes in March, according to local authorities. The import from USA and Japan represented 86% of total import in January-March, which increased from 77% of annual average in 2011. The rate from Japan increased to 30% from 7%. Chinese users apparently shifted the supply source from Europe to Japan due to European slow economy under financial problem.

The import increased to 436,200 tonnes at Zhangjiagang port in January-March from same period of 2011. The import in March was 2.2 times of the monthly average volume in 2011. The import price in January-March decreased by 7.3% to US$ 203 million from same period of last year due to lower unit price. The supply source was 7 countries compared with 10 countries in full year of 2011. The users stopped purchasing from Russia, UK and Belgium in January-March.

Monthly average number of the import was 22 times in January-March, which was higher than 15 times of annual average in 2011. The number hit the record of 29 times in March. The import volume per arrival decreased. The import of more than 10,000 tonnes was 10 times in January-March while 5,000 tonnes or less was 52 times. The port improved efficiency of loading and unloading to reduce ship congestion.

Chinese crude steel output increased by 2.5% to 174.22 million tonnes in January-March from same period of 2011. The output hit the monthly record of 61.85 million tonnes in March. The steelmaking material demand is increasing again.