Japanese ferrous scrap exporters are increasing their focus on the growing Indian steel market as they look for to keep sales despite dropping need from their traditional Asian markets.
Bureau of International Recycling Board Member Hisatoshi Kojo informed Platts on Tuesday that currently Japan is offering bulk freights to India varying from 10,000 mt to 15,000 mt.
" We are currently aiming for India," Kojo said on the sidelines of the BIR Round-Table Procedure in Prague. "We have to discover a new home. Right now they are reviewing our scrap high quality." Japanese scrap exporters have actually been exploring alternate homes for their material as a result of decreasing demand from Taiwan as well as South Korea, which have reduced their scrap acquisitions for Chinese billet.
Ordinary products from Japan to Taiwan or South Korea is about $20-$ 25/mt, according to Kojo while freight to India is $40-$ 45/mt.
In the initial 6 months of 2015, Japan exported 4.14 million mt of scrap.
The top destinations were South Korea (1.6 million mt), China (1.04 million mt), Vietnam (700,000 mt) and Taiwan (677,000 mt). Japan is the world's second largest scrap exporter behind the US.
" We have seen them do this for many years from Japan," stated one scrap exporter that offers product into India. "Right now India is so price-sensitive so if the rate is right, they will get. Typically when mass is marketed to India it is bought by groups of mills, not just one."
Kojo stated Turkey is not presently a sensible market for Japanese scrap since freights would certainly have to be 20,000-25,000 mt to make best use of the expensive freight.
India has actually re-emerged as a leading location for scrap.
In the 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 very first half 2014.
India gets on the edge of exceeding the US to come to be the third-largest steel producer behind China and also Japan.
India produced 67.6 million mt of steel through the initial 9 months of 2015, and also a total of 87.3 million mt in 2014, according to worldsteel data. In 2014, the United States produced 88.2 million mt.
Asked if India would become the following China, Sunil Barthwal, Ministry of Steel for the Government of India, said: "This is the concern which the entire world is asking."
Based on financial development estimates, Barthwal said annual Indian steel manufacturing can reach 300 million mt in the future. Chinese steel manufacturing covered 800 million mt in 2014.
" Chelating Agent are not near to China and we do not wish to become that near China," Barthwal stated.
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