US: Ferrous scrap exports decrease 12% m-o-m in Jul'21

The United States, the world's largest ferrous scrap supplier, witnessed a significant 12% m-o-m drop in exports of the material to 1.38 million tonnes (mn t) in Jul'21 as against 1.57 mn t in Jun'21, as per customs data compiled by SteelMint.

On a y-o-y basis, exports were up by 13% from 1.22 mn t in Jul'20.

Mexico was the top importer with 0.29 mn t in Jul'21, followed by Turkey and Malaysia with 0.27 mn t and 0.14 mn t respectively.

Market highlights

• Rise in Turkey's imports: Turkey, a major buyer of the US ferrous scrap, imported 0.27 mn t in Jul'21 compared to 0.09 mn t in the preceding month, a massive 200% m-o-m increase. Robust steel demand in Turkey supported scrap imports into the country as construction works resumed with the easing of Covid restrictions.
  
  
• Shipments drop for Bangladesh: Bangladesh, one of the major buyers of the US' ferrous scrap, imported 0.04 mn t in Jul'21 compared to 0.12 mn t in the earlier month, a sharp drop of 67% m-o-m on due to lockdown restrictions which had disturbed mills' operations. Buyers had already restocked material and hence chose to use inventories lying with them on dull steel demand for the coming monsoon season.
  
  
• Exports to Vietnam dip: Vietnamese mills imported 0.13 mn t of scrap in Jul'21 as against 0.18 mn t in Jun'21, a significant drop of 28% m-o-m. Import volumes into Vietnam dropped owing to sluggish finished steel sentiments due to disparities in bids and offers. Meanwhile, Vietnam is still under lockdown restrictions and is struggling with rising cases of the new Covid variant which has dampened demand for steel.
  
  
• Ferrous scrap prices up in Jun: SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $503/t CFR Turkey in Jun'21, up by $4/t from $499/t CFR Turkey in May'21. Imported scrap offers varied throughout the month and picked up on rising scrap demand.
  
  

Outlook
US ferrous scrap exports may see an uptick as lockdown restrictions has started easing in many of the major buying countries like Bangladesh, Vietnam and Turkey.