USA's ferrous scrap export hits five-years high in August

The USA- world's largest ferrous scrap supplier, exported scrap 1.84 mn t in Aug'20, higher by 52% from 1.21 mn t in Jul'20, as per customs data maintained with SteelMint. Notably, US ferrous scrap exports hit a record five years high of 1.84 mn t in August.

Meanwhile, on a yearly basis, the country exported 11.30 mn t during Jan-Aug'20 as compared to 11.82 mn t a year ago.

Market highlights -

• The sharp rise was driven by a 75% upswing in shipments to Turkey, the top buyer of US ferrous scrap, to 0.65 mn t in Aug'20 as against 0.37 mn t in Jul'20 due to mills in the country rushing to replenish diminished inventories after the lockdown.
  
  
• Interest in the deep-sea market from Turkey has died down amid reports that the country's long steel demand has been affected by a weakening Turkish Lira and a strengthening US dollar. This has made US ferrous scrap more expensive to buy for Turkish mills.
  
  
• Bangladeshi steelmakers had resumed bulk scrap bookings in June after a 1.5 months gap on account of covid-19 pandemic pulling the steel demand very low, and also due to high inventories post very active bookings in Mar'20. The country imported 0.22 mn t in Aug'20.
  
  
• Steel scrap HMS 1&2 (80:20) imported prices to Turkey rose from $260/t CNF Turkey in Jun'20 to $265/t CNF Turkey in Jul'20.
  
  

Quantity in mn t
Source: SteelMint stats & customs data

Market participants do not expect the prices to fall sharply in the near term, and remain supported due to improving demands in most major markets, who are scaling up their steel production levels.