South Korea’s scrap imports slump in 1H 2024

South Korea's ferrous scrap imports fell by nearly 50pc from a year earlier in this year's first half, customs data show, with a prolonged bearishness in downstream steel markets that prompted domestic mills to shun imported scrap and focus on domestic material.

• Shipments from Japan in June accounted for 72pc of South Korea's net imports.
• South Korea was the sixth-largest crude steel producer in June, World Steel data show, producing 5.1mn t that took the first-half total to 31.5mn t and a 6.4pc fall from a year earlier.
• South Korea's construction sector faltered in June with falling investment reflecting a downturn in the real estate market. Overall economic activity was weighed down by elevated interest rates and high corporate sector debt.
• Asian regional steel producers have been grappling with significant oversupply issues from China, which drove down steel product prices. Despite some government stimulus to help support the real estate sector, they have been insignificant and too modest to make an impact. Asian steel mills will continue to struggle as China's steel industry continues to keep production rates high, despite weak domestic demand and margins.