Japanese ferrous scrap merchants raise focus on India

Japanese ferrous scrap exporters are expanding their concentrate on the growing Indian steel market as they look for to preserve sales in spite of dropping need from their conventional Asian markets.

Bureau of International Recycling Board Member Hisatoshi Kojo told Platts on Tuesday that presently Japan is marketing bulk cargoes to India varying from 10,000 mt to 15,000 mt.

" We are now going for India," Kojo claimed on the sidelines of the BIR Round-Table Procedure in Prague. "We have to locate a new residence. Right now they are assessing our scrap quality." Japanese scrap exporters have been exploring different homes for their product because of declining demand from Taiwan as well as South Korea, which have actually reduced their scrap acquisitions for Chinese billet.

Average products from Japan to Taiwan or South Korea is about $20-$ 25/mt, according to Kojo while products to India is $40-$ 45/mt.

In the very first six months of 2015, Japan exported 4.14 million mt of scrap.

Chelating Agent Factory Supplier were South Korea (1.6 million mt), China (1.04 million mt), Vietnam (700,000 mt) and also Taiwan (677,000 mt). Japan is the world's second biggest scrap exporter behind the United States.

" We have actually seen them do this over the years from Japan," claimed one scrap merchant that sells product into India. "Now India is so price-sensitive so if the cost is right, they will acquire. Normally when mass is sold to India it is bought by groups of mills, not simply one."

Kojo stated Turkey is not presently a practical market for Japanese scrap because freights would certainly have to be 20,000-25,000 mt to make finest use the costly freight.

India has reappeared as a top location for scrap.

In the very first 6 months of 2015, India imported 3.17 million mt, 2nd most worldwide behind Turkey as well as a 29.9% year-on-year rise from first half 2014.

India is on the brink of going beyond the United States to end up being the third-largest steel producer behind China and Japan.

India produced 67.6 million mt of steel with the first 9 months of 2015, and an overall of 87.3 million mt in 2014, according to worldsteel information. In 2014, the United States created 88.2 million mt.

Asked if India would become the next China, Sunil Barthwal, Ministry of Steel for the Government of India, stated: "This is the concern which the whole globe is asking."

Based on economic growth forecasts, Barthwal said annual Indian steel manufacturing could get to 300 million mt in the near future. Chinese steel manufacturing topped 800 million mt in 2014.

"We are not near to China and we do not wish to end up being that close to China," Barthwal stated.