<article><p class="lead">South Korean ferrous scrap imports veered off a three-year high in April on slowing trade amid the latest wave of the Covid-19 pandemic, sources said.</p><p>Imports of ferrous scrap into South Korea totalled 521,759t in April, South Korea's custom data showed. This was down 11.8pc month on month from a three-year high of 591,806t in March 2022. Before that, the import volume was last seen higher in March 2019 at 632,633t. Year on year, the import volume rebounded from a low base, rising 26.7pc from April 2021 when demand was severely restricted by the pandemic.</p><p>Trade sources said that the lower month-on-month import volume could be attributed to slower economic growth. In April, exports from South Korea grew at 12.6pc, the slowest pace in 14 months and down from an 18.2pc jump in March.</p><p>In particular, South Korea's exports to China, its major trade partner, took a major hit as China implemented sweeping Covid-19 lockdown measures on affected states. South Korean exports to China declined by 3.4pc on the month.</p><p>In addition, Hyundai Motor Company reported in early May that car sales in South Korea were down 15.4pc year on year at 59,415 units. Global sales stood at 308,788 units, marking an 11.6pc decrease from a year earlier. South Korea also grappled with a faster-than-expected inflation rate, which surged to a 13-and-a-half-year high in April, up 4.8pc from a year prior, Statistics Korea data showed. </p><p>Japan remained the top exporter of ferrous scrap to South Korea at 364,160t in April, up 33.2pc year on year. Japan accounted for 69.79pc of South Korea's scrap imports in April. </p><p>Russia surpassed the US to become the second-largest exporter of scrap to South Korea, with exports totalling 41,532t in April despite the imposition of financial sanctions on Russia's economy following the invasion of Ukraine. This marked a 159.8pc spike year on year. The US came in at third place at 17,824t, which was 78.6pc down year on year.</p><p>Looking ahead, trade sources expect South Korea's scrap imports to decline further as local steelmakers were seen to be more reliant on domestic scrap in May as it was more competitively priced compared with seaborne scrap, trade sources said. </p><p class="bylines">By Jing Zhi Ng</p></article>
