USA: Aluminium scrap exports fall by 7% m-o-m in June 2023

Exports of aluminium scrap from the US stood at 178,271 tonnes (t) in June 2023, a decrease of 7% m-o-m from 192,516 t in May. However, y-o-y exports rose by 11% in June as against 160,996 t in the corresponding month of last year, as per data maintained with SteelMint.

The country's constrained scrap availability, coupled with holiday like Good Friday and Easter, led to restricted exports. Furthermore, the importers remained subdued due to the fluctuations in the futures market.

India stood as the largest importer of aluminium scrap from the US. Notably, the major scrap grades exported by the US are zorba and taint tabor (TT).

Country-wise exports

Maximum scrap movements were observed from Los Angeles followed by New York and Norfolk compared to other regions of the US in January-June period.

• India: India was the largest buyer from the US in June. Exports from the US to India in June stood at 46,588 t, a marginal fall of 3% m-o-m from 48,138 t in May. In contrast, exports were recorded at 40,855 t in June 2022, up by 14% y-o-y in June 2023.
  
  

In India, the observance of the Ramadan festival throughout various regions resulted in limited working hours for key end-users, thereby impacting the trading of metal scrap. Additionally, India experienced a decline in automobile production during June, with the output decreasing from 1,957,599 units in May to 2,024,703 units in June.

• Malaysia: Malaysia stood as a second largest importing destination from the US. The US exported 23,419 t of aluminium scrap to Malaysia in June, down by 23% m-o-m from 30,537 t in April. Similarly, exports were down by 29% y-o-y in June from 32,969 t in the year-ago month.
  
  

Likewise, the nation witnessed a y-o-y reduction in both automobile production and sales. The automotive sector experienced a 3% decline in production, totaling 58,051 units (passenger and commercial vehicles), as compared to the corresponding period from the previous year. In parallel, automotive sales amounted to 62,569 units, exhibiting a marginal 1.7% decrease y-o-y.

• South Korea: South Korea's aluminium scrap imports from the US were up by 9% at 23,253 t in June compared with 21,406 t in May. However, exports from the US fell by 7% in June from 25,087 t in June 2022.
  
  

In June 2023, both domestic and international sales by South Korea saw a notable increase of nearly 13%, reaching 370,284 units as compared to 328,360 units in the previous year, as reported by the Korea Automobile Manufacturers Association. This growth occurred by enhanced semiconductor supplies compared to the previous year, along with the introduction of new models by prominent automakers.