Aluminium scrap export by Japan drops in H2 2017, import is on the rise

Japan is a major exporter of aluminium scrap and automotive grade aluminium alloy scrap to the entire of South East Asia. The country shipped 197750 tonnes of aluminium scrap globally in 2016. The total export was valued at US$349 million. On the other hand the country imported just 39281 tonnes of aluminium scrap and the cost of import stood at US$ 65 million.

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If we do a quarter on quarter analysis, we observe that Japan exported an estimated 51,511 tonnes of aluminium scrap in Q1 2016-17. In Q2, the amount dropped to 48,658 tonnes. In Q3, the estimated aluminium scrap export increased to 52,068 tonnes and in Q4, the amount dropped to 47,842 tonnes. This shows the scrap export is on the rise on every alternate quarter.

On the import scene, Japan imported an estimated 9,402tonnes of aluminium scrap in Q1 2016-17. In Q2, the amount increased to 9,553 tonnes. In Q3, the estimated aluminium scrap import dropped to 8,722 tonnes and in Q4, the amount significantly increased to 11,670 tonnes. This shows the scrap imports and exports were on the rise on every alternative quarter; when export was on the rise import was low and vice-versa.

On a final analysis, exports dropped in the second half of FY 2016-17 and import of aluminium scrap increased in the second half. The export value stood at about US$ 177 million during the first half of the year and increased to about US$ 193 million in the second half of the year. Revenue from export increased because of the increase in aluminium scrap price in the international market. The cost of import stood at about US$ 32 million during the first half of the year and increased to about US$ 35 million in the second half of the year.

For the first quarter of 2017, Japan is estimated to export 50,235 tonnes and import 9,880 tonnes of aluminium scrap. . The export value is estimated to be about US$ 100 million and the cost of import is estimated to be about US$ 18 million.

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Japan has been exporting a major chunk of its aluminium scrap to South Korea. The country’s secondary aluminium smelters was consuming 25,000-30,000 tonnes of 6063 aluminium extrusion scrap on an average in a month and exporting around 1,000-3,000 tonnes to South Korea, showed Japan Aluminium Alloy Refiners Association data. The fall in total export in the second half of FY 2017 could be because the South East Asian country has reportedly turned to Zorba scrap and the US twitch as they have been found to be more economical.