Ferrous scrap imports to top Asian destinations South Korea, Vietnam and Taiwan fell by 11pc in January from a year earlier, according to customs data.

The decline may have been partly driven by an earlier-than-usual start to the lunar new year, which could have slowed customs processing and shipments. All three countries celebrate the holiday, which fell in late January this year compared to February last year.

Imports that cleared customs in January would have been bought from the US in late October or early November, or from Japan in early-to-mid December.

South Korea’s January ferrous scrap imports fell by 32pc on the year and by 21pc from December to 410,362t. Japan was its major supplier with 56pc of all shipments or 230,702t, down by 32pc on the month and by 47pc from a year earlier.

US supplies maintained last year’s growth into South Korea and were the only origin to post a gain in January. US imports rose by 52pc from December and were up by 65pc on the year to 110,622t.

South Korea’s imports from the US in 2019 rose by 27pc to 1.11mn t, while Korea’s overall imports remained flat at 6.5mn t. Buyers shifted to US suppliers after Russia restricted ferrous scrap exports in September-December 2019.

Vietnam’s January ferrous scrap imports rose by 42pc on the year but fell by 28pc from December to 334,559t. Imports from Japan, its largest supplier, were down by 45pc from December but up by 75pc on the year at 143,203t. Imports from the US and Hong Kong rose by 137pc and 19pc from a month earlier respectively.

Vietnam’s ferrous scrap imports have risen rapidly over the past five years because of increasing domestic steel demand and restrictions on imports of semi-finished steel. A further rise in capacity is expected to keep that growth intact in 2020.

Taiwan’s ferrous scrap imports were 254,905t in January, down by 12pc on the year and by 35pc from December as it shifted to semi-finished imports.

Ferrous scrap imports from the US decreased by 17pc on the month and by 8pc year on year. Imports from Japan fell by 74pc on the month but increased by 29pc from January last year.

Taiwan’s imports of billets surged by 75pc, to 392,590t in January from 224,534t in December.

The acceleration of US imports into Vietnam and South Korea in January was part of a shift in sourcing that started in late 2019. US suppliers offered at competitive prices compared with Japanese scrap, leading to a shift toward the US at the expense of other origins.

But this trend could reverse, with Japanese suppliers more aggressively offering seaborne scrap as domestic demand weakens and forces Japanese mills to cut production.