US: Ferrous scrap export volume shows an 11% hike m-o-m in February
The US witnessed an 11% m-o-m hike in ferrous scrap exports in February 2023. The country, which is the top ferrous scrap exporter in the world, saw a recovery after a dr...
The US witnessed an 11% m-o-m hike in ferrous scrap exports in February 2023.
The country, which is the top ferrous scrap exporter in the world, saw a recovery after a drop in export volume in January 2023. The country exported a total of 1.35 million tonnes (mnt) of scrap in February against 1.22 mnt in January.
US scrap export prices increased as compared to December. In January 2023, these stood at $412/t CNF Turkiye, followed by $436/t Hai Phong Port, Vietnam. With demand from major mills in these two countries rising, imports also increased significantly. Additionally, seasonal factors or changes in trade policies and regulations also influenced export volumes.
Turkish mills actively procured in February as well. This happened after the earthquake devastated large portions of the country. Reconstruction required rebars which led to significant imports of scrap.
Scrap imports
The US' ferrous scrap import volumes increased by 11% m-o-m to 0.40 mnt in February 2023 compared to 0.36 mnt in January 2023. Canada remained the highest exporter at 0.28 mnt.
Billet imports
The US' steel billets imports inched down by 5% m-o-m to 0.29 mnt in February 2023 from 0.31 mnt in January 2023, as per data recently released by Customs. Brazil was the largest exporter at 0.23 mnt in February 2023. Crude steel production by the US was down by 7% m-o-m to 6 mnt in February.
Country-wise shipments
Turkiye top importer, US export to Bangladesh rises: Turkiye received 382,644 t of US scrap in February compared to 247,043 t in January, a sharp hike of 55% m-o-m. Bangladesh, one of the emerging buyers of US ferrous scrap, imported 99,211 t in February, a hike of 161% compared to 38,058 t in January.
Exports to Vietnam increase m-o-m: The US exported 201,469 t of ferrous scrap to Vietnam, a significant hike of 141% m-o-m compared to 83,678 t in January 2023. Vietnamese buyers procured more chunks towards the second month for maintaining their scrap inventory before peak demand season.
Exports to Mexico down: US exports to Mexico declined by 31% to 207,720 t in February 2023 as against 301,921 t in January 2023.
Outlook
US scrap export prices might rise in the coming months due to the high demand for scrap in major countries like Turkiye, India, and Bangladesh followed by Mexico and Vietnam. The probability of Turkiye's scrap import volume might see a significant rise due to an earthquake recovery process in March.