Canada: Ferrous Scrap Exports Fall 27% in January

Canada- one of the world's major scrap exporter has witnessed significant fall in its ferrous scrap exports by 27% M-o-M in Jan'18 as against scrap exports in Dec'17.

As per recently released customs data, the nation exported 0.35 MnT ferrous scrap in Jan'18 as against 0.48 MnT ferrous scrap exports recorded in Dec'17. Notably, Canada had recorded highest monthly ferrous scrap exports in Dec'17 since 2015.

On the other hand, Canada witnessed 40% Y-o-Y surge in its ferrous scrap exports in Jan'18 as against 0.25 MnT exports in Jan'17 on yearly premises.

In 2017, yearly scrap exports from Canada leaped above 4 MnT the first time since 2015 registering growth of 26% Y-o-Y in 2017. The country exported 4.24 MnT ferrous scrap in 2017 as against 3.37 MnT scrap exports recorded in 2016. While the same was at 3.05 MnT in 2015.

Fall in ferrous scrap exports could be attributed significantly decreased imports from major importers like Turkey, Egypt, Pakistan and Vietnam compared to last month.

According to World Steel Association, crude steel production of Canada has increased marginally to 1.140 MnT in Jan'18 compared to 1.137 MnT in Dec'17. Also increased domestic scrap consumption on rising crude steel output may have lead to decrease in scrap export volumes.

United States scrap imports from Canada remained stable in Jan'18 -

In Jan'18, Canada exported highest 0.23 MnT ferrous scrap to United States occupying 65% share of total scrap exports. Thus, United States remained largest importer along with stable scrap imports on M-o-M and Y-o-Y basis from Canada. While Turkey imports decreased nearly to half at 0.08 MnT against 0.15 MnT in Dec'17. Followed by other major importers as India and Taiwan imported each 0.01 MnT (stable M-o-M) from Canada.

Egypt witnessed nil ferrous scrap imports in Jan'18 against 0.05 MnT in Dec'17 while Pakistan registered 67% M-o-M fall as its imports remained at 0.01 MnT as against 0.03 MnT in Dec'17.

Scrap exports to India, Bangladesh and Pakistan expected to increase from Canada -After the imposition of tariffs under US section 232, scrap exports from USA expected to fall amid which Asian countries are likely to increase imports from other major exporters like Canada, Russia and South Africa. However, scrap imports to USA from Canada hardly to affect as Canada has already exempted in import tariffs US section 232 under NAFTA agreement.

In CY17, India imported 0.07 MnT from Canada while Taiwan, Bangladesh and Pakistan imported 0.08, MnT, 0.06 MnT and 0.05 MnT ferrous scrap respectively.

Country-wise Canada ferrous scrap exports -

Quantity In MnT,
Source: SteelMint Stats