By Anil Mathews (ScrapMonster Author)
August 29, 2016 08:06:38 AM
BEIJING (Scrap Monster): The latest statistics released by the Malaysian Department of Statistics indicate that the country’s scrap steel imports dropped sharply in May ’16, in comparison with the previous year. However, imports during the month touched the highest level so far this year. Also, cumulative scrap imports by the country were down significantly over the previous year during Jan-May ’16 this year.
Malaysia imported 29,000 tons of scrap steel during the month of May this year. The imports were down by 38.1% when matched with the previous year. The country had imported 47,000 of scrap steel during May 2015. However, monthly volume touched the highest level of 2016, providing early indications of recovery in scrap import volumes.
The country imported 93,000 tons of scrap steel during the initial five-month period of the year. The imports were down considerably by 69.3% when compared with the net import volume of 303,000 tons during the period from January to May in 2015. The monthly imports averaged at 19,000 tons so far this year. At the current rate, the country’s scrap steel exports are estimated to total around 220,000 tons during the entire year 2016.
The largest exporter of ferrous scrap to Malaysia during the initial five-month period of the year was Singapore. The imports from Singapore totaled 39,000 tons, accounting for 42.2% of the total imports by the country during the period. The imports from Singapore dropped sharply by over 41% from the previous year. The United States was the second largest import source during the quarter. Malaysia’s ferrous scrap imports from the US totaled around 23,000 tons, accounting for 24.3% share of the country’s imports during the month. The imports from the US dropped heavily by nearly 68% year-on-year.
The country’s ferrous scrap imports had totaled around 45,000 tons during the first quarter of 2016, falling significantly by nearly 78% over the previous year. The largest scrap exporter to Malaysia during Q1 2016 was Singapore. The imports from Singapore totaled 17,000 tons, accounting for 38.2% of the total imports by the country during the quarter. The United States was the second largest import source during the quarter. Malaysia’s ferrous scrap imports from the US totaled around 12,000 tons, accounting for 26.1% share of the country’s imports during the month.
The yearly scrap imports by Malaysia during 2015 had touched the lowest levels since 1998. The yearly imports had totaled 445,513, dropping sharply by 53.7% over the previous year. Australia was the key exporter of scrap steel during the year. The country accounted for 28.3% share (126,069 tons) of the total imports by Malaysia during the year. In second place was the US with 113,578 tons, accounting for nearly one-fourth of the total monthly imports. The US was closely followed by Singapore. The imports from the country had totaled 110,350 tons during the entire year 2015.
The World steel Association predicts 6% growth to steel demand in five ASEAN countries including Malaysia. The projected jump in steel demand is likely to result in increased volumes of crude steel output and scrap steel imports. According to the report, infrastructure boost in these countries is likely to propel overall steel consumption to 74.6 million tons in 2017.
