Scrap steel export surges in May
Source: Mysteel
Jul 07, 2017 15:44
As per customs statistics, China exported 15,400-tonne scrap in April, up twenty-two folds from same period last year. The volume surged to 80,300 tonnes in May, increasing 423% month-on-month, which was nearly one thousand times compared with the figure of 84 tonnes in May of 2016.
It is reported that in May, exports to Hong Kong, Taiwan, Indonesia and India registered 20,000 tonnes, 19,000 tonnes, 18000 tonnes and 11,000 tonnes respectively, accounting for 25.2%, 23.7%, 23.2% and 13.3% of the total volume. Main export provinces of China were concentrated in Guangdong and Fujian, and the volumes were 62,700 tonnes and 13,900 tonnes, accounting for 78.1% and 17.3% of the total. In May, export volumes of powdered scrap and other crushed scrap came in at 43,900 tonnes and 36,300 tonnes, which means that light and thin scrap in south of China began to flow into overseas market.
Scrap price in China took a sustained decline due to oversupply from the beginning of this year. Thin scrap price in Guangdong Province dropped from 1,200 yuan/tonne to 665 yuan/tonne in early June. During the same period, imported scrap price of Southeast Asia only lost 206 yuan/tonne to 1,612 yuan/tonne. Stimulated by the huge profit margin, some scrap traders turned to overseas market.
On the whole, whether the soaring export trend can be maintained is closely related to newly-added electric furnaces, market demand and purchase prices of main steel mills in China.
-Edited by Nancy Zheng (zhengmm@mysteel.com)
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