Japan Becomes Largest Ferrous Scrap Exporter to South Korea

South Korean ferrous scrap import increased by 6.7% to 7.8 million tonnes in 2009 from 2008, which represented more than 7 million tonnes for 2 years in a row. Steel makers in South Korea increased the import from Japan when the import from Russia decreased significantly due to the embargo. On the other hand, Japanese exporters increased the export to South Korea while scrap demand decreased in Japan.

South Korean ferrous scrap import from Japan increased by 61.7% to 3.767 million tonnes in 2009 from 2008, which represented more than 3 million tonnes for the first time in 2 years. The scrap import from Japan represented 48% of the total import topping the volume from USA. The import decreased by 1.4% to 2.824 million tonnes from USA. The import from Russia, which was around 1 million tonnes per year since 1999, was 534,672 tonnes, down by 54.8% from 2008.

South Korean ferrous scrap supply is estimated to balance with the domestic demand in around 2020, which takes longer time than expected. The steel makers continue to expand the capacity and scrap import could increase to more than 9 million tonnes in 2010 when the steel makers start the operation of new facilities, according to Japanese trade firm source.