USA: Aluminium scrap exports rise over 15% m-o-m in May'23

Exports of aluminium scrap from the US stood at 192,516 tonnes (t) in May 2023, an increase of 17% m-o-m from 164,548 t in April. Similarly, exports rose by 10% y-o-y in May as against 175,191 t in the corresponding month of last year, as per data maintained with SteelMint.

India was the second largest importer of aluminium scrap from the US, and the major scrap grades exported by the US were 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-May period.

• India: India was the largest buyer from the US in May. Exports from the US to India in May stood at 48,138 t, an increase of 21% m-o-m from 39,755 t in April. Similarly, exports were recorded at 38,449 t in May 2022, up by around 25% y-o-y in May 2023.
  
  

Due to hike in domestic scrap prices buyers shifted towards imports. Also, India's automobile production increased in May, going from 1,957,599 units in April to 2,124,235 units. Capacity expansion by auto major Maruti and other players based in the northern region also led to higher requirement for aluminium alloys, which translated into higher scrap (raw material) imports.

• Malaysia: The US exported 30,537 t of aluminium scrap to Malaysia in May, down 10% m-o-m from 33,980 t in April. However, exports from the US rose by 13% y-o-y in May from 26,979 t in the year-ago month.
  
  

Despite increasing production of automobiles, the country imported limited material amid high inventories. The automobile sector's production rose 32% with 64,930 units (passenger and commercial vehicles) compared with the year-ago period.

• South Korea: South Korea's aluminium scrap imports from the US were up 11.8% at 21,406 t in May compared with 19,152 t in April. However, exports from the US fell by 15% in May from 25,073 t in May 2022.
  
  

Korea's automotive sales, both domestic and overseas, increased by 15% to 682,274 units in May compared to last year, due to easing supplies of semiconductors, and contribution of new model launches.