US ferrous scrap exports rise 33% m-o-m in Aug'21
The United States, the world’s largest ferrous scrap supplier, witnessed a significant 33% m-o-m rise in exports of the material to 1.84 million tonnes (mn t) i...
The United States, the world's largest ferrous scrap supplier, witnessed a significant 33% m-o-m rise in exports of the material to 1.84 million tonnes (mn t) in Aug'21 as against 1.38 mn t in Jul'21, as per customs data compiled by SteelMint.
On a y-o-y basis, exports were stable at 1.84 mn t.
US market highlights
- Rise in Turkey's imports: Turkey outpaced Mexico, gaining the first position with imported volumes at 0.39 mn t in Aug'21 compared to 0.27 mn t in the preceding month, a 44% m-o-m increase. Strong positive steel demand in Turkey sustained scrap imports into the country as offers by the suppliers remained satisfactory with construction works resuming due to the easing of Covid restrictions.
- Shipments for Bangladesh rise: Bangladesh, one of the major buyers of the US' ferrous scrap, imported 0.33 mn t in Aug'21 compared to 0.04 mn t in the preceding month, a massive rise of around 700% m-o-m. This sudden hike in imports is due to restocking of material ahead of steel demand pick-up. Bangladeshi mills preferred US-origin material further as Japanese scrap remains out of reach owing to its high freight charges.
- Exports to Vietnam dip: Vietnamese mills imported 0.09 mn t of scrap in Aug'21 as against 0.13 mn t in Jul'21, a significant drop of 31% m-o-m. Import volumes dropped due to lower domestic consumption and, decline in trading activities owing to less demand for finished steel. Covid lockdown restrictions caused logistics hurdles and discrepancies in bids and offers which further limited buying activities.
- Ferrous scrap prices down in July: SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $486/t CFR Turkey in Jul'21, down by $17/t from $503/t CFR Turkey in Jun'21. Imported scrap offers varied throughout the month, decreasing July-end.
US ferrous scrap exports may see an uptick as a major buying country like Vietnam is preferring US material over Japan. With easing of lockdown restrictions in many major buying countries like Bangladesh and Turkey, US export volumes can increase in the near term.