US: Ferrous scrap exports down 15% y-o-y in H1CY'24 on bearish demand in neighbouring countries

In H1CY'24, the export of ferrous scrap from the USA decreased by 15% to 7.28 million tonnes (mnt) from 8.56 mnt in H1CY'23. Similarly, in June, the USA saw a decline of 14% m-o-m in ferrous scrap exports which fell to 1.50 mnt in May from 1.29 mnt in June. Y-o-y, there was a slight 1% increase in ferrous scrap exports in June compared to June'23.

Country-wise exports

Exports to Mexico: In H1CY'24, exports decreased significantly by 44% y-o-y to 1.15 mnt against 2.05 mnt in H1'CY23. Ferrous scrap exports from the USA decreased by 36% m-o-m from 0.14 mnt to 0.22 mnt as compared to May. Y-o-y, ferrous scrap exports decreased 30% from 0.2 mnt in June 2023.

Exports to Canada: In H1, there was a significant decrease in exports of 21% y-o-y in comparison with 0.43 mnt in H1'CY23. Ferrous scrap exports from the USA decreased by 21% m-o-m from 0.05 mnt to 0.06 mnt as compared to May. Y-o-y, ferrous scrap exports increased by 29% from 0.07 mnt in May 2023.

Exports to Vietnam: In H1, there was a sharp decrease of 62% y-o-y in exports to 0.24 mnt in comparison with 0.63 mnt in H1'CY23. Scrap exports from the USA decreased by 20% m-o-m from 0.04 mnt to 0.05 mnt compared to May. Y-o-y, ferrous scrap exports increased by 100% from 0.02 mnt in June 2023.

Exports to Bangladesh: In H1, exports rose by 32% y-o-y to 0.92 mnt in comparison with 0.69 mnt in H1'CY23. Exports to Bangladesh surged 20% m-o-m in June compared to 0.2 mnt in May 2024. Y-o-y, export volumes rose significantly by 118% from 0.11 mnt compared to May 2023.

Exports to India: In H1, US ferrous scrap exports to India increased by 8% y-o-y totalling 0.56 mnt compared to 0.52 mnt in H1'CY23. However, June saw a notable 32% m-o-m decline, with exports falling from 0.19 mnt in May to 0.13 mnt. Despite this drop, June's exports were up over 30% y-o-y from 0.10 mnt in June 2023. The rise in exports earlier in the year was driven by strong demand from Indian steel mills, which secured bulk scrap vessels from the US West Coast at competitive prices.

Exports to Turkiye: In H1, US ferrous scrap exports to Turkiye rose by 5% y-o-y to 2.14 mnt, up from 2.04 mnt in H1'CY23. This increase was partly due to new capacities, such as Tosyali Holding's 4 mnt/year electric arc furnace-based flat steel mill, which boosted demand for ferrous scrap.

However, June exports fell by 8% m-o-m to 0.36 mnt from 0.39 mnt in May and declined 27% y-o-y from 0.49 mnt in June 2023. The decrease in exports was due to lower scrap consumption by Turkish mills, driven by reduced domestic and export rebar sales, higher US offers, rising freight costs, and lower scrap collection.