Canada: Ferrous Scrap Exports Rise 25% during Jan-Aug'18 on Rising Turkish Purchases

Canada- one of the world's major scrap exporters has been witnessing considerable rise in its scrap exports in CY18. As per recent customs data, Canada exported around 3,352,319 MT ferrous scrap in the first eight months of CY18, up 25% Y-o-Y as against 2,672,741 MT exports recorded during Jan-Aug'17.

During Jan-Aug'18, Turkey remained second largest importer with 0.60 MnT ferrous scrap followed after the largest importer of Canadian scrap, USA (2.20 MnT). On rising EAF outputs, Turkey observed sharp surge of 131% Y-o-Y in its scrap imports from Canada as against 0.26 MnT during same period last year.

Canada produced 8.51 MnT crude steel during Jan-Aug'18, down 3% as compared to 8.80 MnT crude steel produced during the same period last year. Marginal fall in crude steel output along with increasing domestic generation of scrap could also have supported to an increase in scrap exports from Canada.

The country witnessed growing ferrous scrap exports in CY18 despite of high average global scrap export prices as compared to last year. On similar notes, the demand for premium quality scrap usually supplied by leading yards in Canada has increased significantly from major importers like Brazil, Taiwan, India and Bangladesh, while Mexico observed fall in scrap imports from Canada.

Canadian scrap exports rise marginally in Aug'18 - Canadian scrap exports ascent by 4% M-o-M in Aug'18 as against exports recorded last month. Canada exported 490,270 MT ferrous scrap in Aug'18 as against 471,025 MT exports recorded in Jul'18.

USA remained the largest importer of Canadian ferrous scrap - USA remained largest importer occupying highest 63% (308,454 MT, +4% M-o-M) share in total scrap exports in Aug'18. Followed by other major importers like Turkey (102,505 MT, stable M-o-M), Brazil (33,000 MT), Bangladesh (13,876 MT, stable M-o-M), Taiwan (11,409 MT, +50% M-o-M) and India (9,186 MT, +27% M-o-M).

Canada's crude steel production stable M-o-M in Aug'18 - According to World Steel Association, country's crude steel production recorded stable at 1.02 MnT in Aug'18 on monthly premises. Canada exported 5.70 MnT iron ore in Aug'18, up by 18% M-o-M as against 4.84 MnT in Jul'18.

On yearly premises, Canadian exports rose sharply by 40% Y-o-Y as against 345,265 MT ferrous scrap exports recorded in Aug'17. Turkey observed significantly increased imports to 0.10 MnT ferrous scrap in Aug'18 as against nil volume in Aug'17. While imports from USA and Taiwan climbed up marginally as compared with last year.

The country recently unveiled new quotas and tariffs on imports of seven categories of steel from majority countries, exempting few in the light of the potential rise in steel imports post U.S. steel tariffs announcement in Mar'18. Canada being net importer of steel, new safeguards measures are likely to hurt its construction sector quite badly.

Country-wise Canada ferrous scrap exports -

Quantity in MnT,
Source: SteelMint Stats