GACC: China Q1 ferrous scrap imports plunge 55% YoY
The slack scrap demand from domestic steelmakers was the main drag on the imports in the last three months, Mysteel Global noted.
China's steel market failed to usher in a traditional spring revival due to the slow recovery in steel demand from end-users, and both blast furnace (BF) and electric-arc-furnace (EAF) steel mills across the country were reluctant to lift production, as reported.
By the end of March, the average BF capacity utilization rate among the 247 steelmakers Mysteel tracks was 82.76%, lower by 7.3 percentage points on year, while the capacity use among the 87 EAF mills under Mysteel's other survey was 53.06%, down by 15.12 percentage points on year.
For March alone, China's ferrous scrap imports recorded 24,241 tonnes, falling by a large 32,086 tonnes or 60% from the same period last year, though the volume jumped by 12,264 tonnes or 102% from February, GACC data showed.
China's scrap trading activity was largely suspended for around one week in mid-February as market participants generally closed their businesses to enjoy the Chinese New year holiday, Mysteel Global noted. As such, the country's scrap import volume registered a low base in February and rebounded significantly last month when the traders resumed normal operations.
In March, Japan remained China's largest ferrous scrap supplier, with its export volume to China slumping 47.8% on year to reach 7,612 tonnes, despite a surge of 138% on-month, according GACC data.
Steel scrap imported from Japan accounted for some 54.1% of China's total imports of the feedstock in March, the data showed. However, the import costs of Japan's steel scrap were still more expensive than the domestically sourced materials in China last month, according to Mysteel's survey.
As of March 29, China's spot transaction price of the 6-8mm common-grade carbon steel scrap in East China's Zhangjiagang city was assessed by Mysteel at Yuan 2,500/tonne ($352.9/t) excluding the 13% VAT, while Japanese price for HS scrap hovered at $394/t CFR.
Written by Anthea Shi, shihiu@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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