GACC: China's Jan-May ferrous scrap imports jump 25% YoY

In May alone, the import total leapt by 20.2% on year to reach 28,318 tonnes, although the volume was 21.3% lower from April, the GACC data showed.

The on-month decrease reflected weaker production activity among Chinese steelmakers at the start of summer and the usual off-season for the country's steel consumption, Mysteel Global noted.

Stainless steel scrap continued to account for the bulk of the China's ferrous scrap imports, with the volume rising 34% on year to 17,741 tonnes in May, according to the GACC. Over the first five months stainless scrap imports also surged 75% on year to 78,932 tonnes.

In contrast, China's imports of common carbon steel scrap remained minimal last month, as domestic traders and steelmakers were still suffering heavy losses on buying scrap materials in the international market, Mysteel Global noted.

For example, the import price of HS grade scrap from China's top steel scrap supplier, Japan, averaged $422/tonne during May, higher by a substantial $123/t compared with the average transaction price of the 6-8mm common carbon steel scrap in East China's Jiangsu province during the same period, according to Mysteel's assessment.

In May, China imported a total of 11,654 tonnes of steel scrap from Japan, higher by 7% from the same month last year but lower by 16% from the previous month, GACC data showed.

During January-May, however, steel scrap imports from Japan dipped 0.7% on year to 64,063 tonnes, accounting for 44.6% of China's total imports during the same period, according to the GACC.

Written by Anthea Shi, shihui@mysteel.com

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