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Botswana Steel Scrap Import Market -- HS Code 7204 Trade Data & Price Trend (Jan 2025)

Botswana Steel Scrap (HS Code 7204) Import in Jan 2025 was 100% stainless steel, with 96% value controlled by two suppliers and 99% sourced from South Africa, per yTrade data.

Botswana Steel Scrap Import (HS 7204) Key Takeaways

Botswana's steel scrap imports under HS Code 7204 in January 2025 were entirely composed of stainless steel scrap, traded as a bulk commodity tied to global price indices. The market is highly concentrated, with just two suppliers handling 96% of the value, creating significant supply chain vulnerability. South Africa dominated imports with a 99% weight share, highlighting heavy geographic reliance. The initial data shows stable pricing at $1.97/kg, setting a baseline for future trends. This analysis is based on cleanly processed customs data from the yTrade database for January 2025.

Botswana Steel Scrap Import (HS 7204) Background

What is HS Code 7204?

HS Code 7204 covers waste and scrap of iron or steel, including remelting scrap ingots. This product is a critical raw material for steel production, recycled by foundries and mills to reduce costs and environmental impact. Global demand remains stable due to its role in sustainable manufacturing and cost-efficient steelmaking.

Current Context and Strategic Position

The U.S. Administration increased tariffs on all imports from Botswana to 37%, effective 9 April 2025, impacting HS Code 7204 trade flows [Global Trade Alert]. Botswana’s steel scrap imports are strategically significant, serving as a cost-effective input for regional steel producers. With rising global scrap prices and tariff pressures, monitoring Botswana’s steel scrap import trends under HS Code 7204 trade data is essential for market resilience. Vigilance is warranted to navigate shifting trade policies and supply chain dynamics.

Botswana Steel Scrap Import (HS 7204) Price Trend

Key Observations

The Botswana Steel Scrap Import trend for January 2025 under HS code 7204 recorded a total value of $129,980, with an average unit price of $1.97 per kilogram. This initial monthly figure provides a baseline for assessing the hs code 7204 value trend as the year progresses.

Price and Volume Dynamics

With a shipment weight of 66,000 kilograms, the January data reflects a standard volume for steel scrap trade, though no prior months' data is available for sequential comparison. Industry patterns suggest that steel scrap demand often stabilizes in early year periods before potential increases aligned with seasonal construction and manufacturing cycles, indicating that this entry could set the stage for gradual growth.

External Context and Outlook

No specific policy changes or news events directly affected the January 2025 import landscape for Botswana's steel scrap. However, broader factors like global steel price volatility and regional economic conditions typically influence trade flows, suggesting that monitoring currency shifts and international demand will be key for future outlooks.

Botswana Steel Scrap Import (HS 7204) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, Botswana's import of HS Code 7204 in January 2025 is entirely dominated by a single product: ferrous waste and scrap of stainless steel, with a unit price of 1.97 USD per kilogram. This complete concentration indicates a highly specialized market with no other sub-codes present, focusing solely on this grade of scrap metal.

Value-Chain Structure and Grade Analysis

The market structure for HS Code 7204 imports into Botswana shows no variation in product types, as only stainless steel scrap is traded. This implies a bulk commodity trade, where the product is standardized and fungible, likely linked to global scrap metal indices rather than differentiated manufactured goods.

Strategic Implication and Pricing Power

For importers handling Botswana's HS Code 7204 imports, the monolithic product focus means pricing power is tied to international scrap market dynamics. Strategic efforts should prioritize supply chain stability for stainless steel scrap and close monitoring of global price movements to manage costs effectively.

Check Detailed HS Code 7204 Breakdown

Botswana Steel Scrap Import (HS 7204) Origin Countries

Geographic Concentration and Dominant Role

In January 2025, South Africa dominated Botswana's Steel Scrap imports under HS Code 7204, with a 96.64% value share and a 99.39% weight share. The weight share slightly exceeding the value share points to trade in bulk, raw material scrap. South Africa also had a high shipment frequency of 87.50%, showing regular supply activity.

Origin Countries Clusters and Underlying Causes

The import sources split into two clusters. South Africa is a Volume/Hub Cluster due to its high weight and value shares, likely because of its geographic proximity and cost-effective bulk scrap supply. China Mainland is a High-Yield Cluster with a value share of 3.36% outweighing its weight share of 0.61%, suggesting occasional imports of higher-grade scrap, but with only one shipment.

Forward Strategy and Supply Chain Implications

Botswana's Steel Scrap supply chain is highly dependent on South Africa, raising stability concerns; exploring more diverse sourcing could reduce this risk. The data for HS Code 7204 shows China as a minor option for premium scrap, but South Africa remains the key partner for bulk needs.

Table: Botswana Steel Scrap (HS 7204) Top Origin Countries (Source: yTrade)

CountryValueQuantityFrequencyWeight
SOUTH AFRICA125.61K47.69K7.0065.59K
CHINA MAINLAND4.37K405.001.00405.00
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Get Complete Origin Countries Profile

Action Plan for Steel Scrap Market Operation and Expansion

Strategic Supply Chain Overview

The Botswana Steel Scrap Import market for hs code 7204 is a pure commodity trade. Price is driven by global stainless steel scrap indices. This is due to the single-product focus on bulk ferrous waste.

Supply chain implications are severe. The market depends on just two high-volume suppliers. It also relies almost entirely on South Africa for raw material. This creates major vulnerability to supply shocks or price spikes. The Steel Scrap supply chain lacks diversification and is built for cost, not resilience.

Action Plan: Data-Driven Steps for Steel Scrap Market Execution and Expansion

  • Continuously track international scrap metal indexes. Use hs code 7204 trade data to time purchases. This protects against buying at price peaks.
  • Develop formal partnerships with the two dominant suppliers. Negotiate volume-based contracts. This secures priority access and stabilizes your most critical supply lines.
  • Identify and pre-qualify smaller, alternative suppliers from the data. Build a list of backup sources. This reduces risk if a primary supplier fails.
  • Analyze shipping routes and costs from South Africa. Optimize logistics for bulk shipments. This controls the largest cost component in the Steel Scrap supply chain.
  • Monitor Chinese export offers for premium grades. Use this intelligence for specialty needs. This allows for sourcing higher-value scrap without relying on bulk channels.

Take Action Now —— Explore Botswana Steel Scrap Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in Botswana Steel Scrap Import 2025 January?

The January 2025 import trend shows a baseline trade volume of 66,000 kg at $1.97/kg, with no prior data for comparison. The market is highly concentrated, relying on bulk stainless steel scrap from a few key suppliers, making it sensitive to global price shifts.

Q2. Who are the main origin countries of Botswana Steel Scrap (HS Code 7204) 2025 January?

South Africa dominates with 96.64% of the import value and 99.39% of the weight, while China accounts for 3.36% of value but only 0.61% of weight.

Q3. Why does the unit price differ across origin countries of Botswana Steel Scrap Import?

The price difference stems from South Africa’s bulk commodity trade (low-cost scrap) versus China’s occasional higher-grade scrap shipments, which command a premium.

Q4. What should importers in Botswana focus on when buying Steel Scrap?

Importers must prioritize supply chain stability with core suppliers like NSW NEWCASTLE STEEL WORKS PTY LTD while developing backup options, given the heavy reliance on two suppliers.

Q5. What does this Botswana Steel Scrap import pattern mean for overseas suppliers?

South African suppliers have a stable, high-volume demand, while niche suppliers (e.g., China) can target premium opportunities but face limited market share.

Q6. How is Steel Scrap typically used in this trade flow?

The imports consist solely of stainless steel scrap, indicating industrial use—likely for recycling or direct processing in manufacturing.

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