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US ferrous scrap exports drop 33% m-o-m in Sept'21

The USA, the world’s largest ferrous scrap supplier, saw a significant 33% m-o-m drop in exports of the material to 1.23 million tonnes (mn t) in Sept’...

Melting Scrap
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13 Nov 2021, 11:04 IST
US ferrous scrap exports drop 33% m-o-m in Sept'21

The USA, the world's largest ferrous scrap supplier, saw a significant 33% m-o-m drop in exports of the material to 1.23 million tonnes (mn t) in Sept'21 as against 1.84 mn t in Aug'21, as per customs data compiled by SteelMint.

On a y-o-y basis, export volumes rose by 6% from 1.16 mn t in Sept'20.

Market highlights:

  • Decline in Turkish imports:Turkey, the largest seaborne consumer of scrap, saw a 15% m-o-m decrease in imports from the USA in Sept'21. The country imported 0.33 mn t compared to 0.39 mn t in the preceding month. Dull finished steel demand softened sentiments in both the local and overseas markets. The Turkish mills kept inventories reserved which prevented them from booking imported scrap cargoes.

  • Fall in shipments for Bangladesh:Bangladesh, one of the major buyers of US ferrous scrap, imported 0.13 mn t in Sept'21 compared to 0.33 mn t in the preceding month, a drop of around 60% m-o-m. This sudden decline in imports was due to low demand for scrap on account of lockdown restrictions, which halted manufacturing activities in the country. Another reason was the rainy weather that impacted construction activities and kept buyers away from making import bookings.

  • Exports to Vietnam dip: Vietnamese mills imported 20,000 t of scrap in Sept'21 as against 90,000 t in Aug, a sharp 78% m-o-m drop. Import volumes into Vietnam dropped due to the impact on steel consumption as a result of the extension of Covid-19 lockdown restrictions leading to logistical hurdles and discrepancies between bids and offers.

  • Ferrous scrap prices down in Aug: SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $455/t CFR Turkey in Aug, down $25-30/t from $486/t CFR Turkey in Jul. Imported scrap offers throughout the month but decreased towards end-Aug.

Outlook
With the easing of lockdown restrictions in major scrap-consuming countries such as Bangladesh, Vietnam and Turkey, US ferrous scrap exports may see an uptick in the coming months.

 

 

13 Nov 2021, 11:04 IST

 

 

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