GACC: China's stainless scrap imports rebound in October

This sharp growth was largely driven by a surge in shipments from Japan, China's largest supplier of stainless scrap, Mysteel Global noted. In October, stainless scrap imports from Japan totaled 4,124 tonnes, soaring by 141.1% from September's record-low volume of just 1,710 tonnes, the GACC data showed.  

Despite the notable monthly recovery, total imports were still 77.1% lower than the same month last year. Mysteel Global attributed this decline to ample domestic supply and falling prices of stainless scrap locally, which have made imports less appealing to Chinese stainless steelmakers.  

Based on the GACC data, Mysteel Global calculated the average unit price of imported stainless scrap in October at $1,178/tonne, inclusive of all grades. By comparison, the price of 304-grade stainless scrap – the highest grade – in East China's Wenzhou was assessed by Mysteel at Yuan 9,700/t ($1,339.2/t) as of November 20, down by Yuan 600/t from the previous month.  

Market analysts predict that domestic stainless scrap prices will remain weak in the near term, as declining stainless steel prices are squeezing the profit margins of producers, reducing their budgets for raw materials, including stainless scrap. This trend is expected to further pressure import volumes for the remainder of this year, sources observed.

From January to October, China's stainless scrap imports plunged by 71.2% year-on-year to just 80,900 tonnes, the GACC data revealed.  

Written by Adele Pan, panqinjie@mysteel.com   

Edited by Russ McCulloch, russ.mcculloch@mysteel.com