USA: Ferrous scrap exports fall by 2% y-o-y in H1CY23

The USA, the world's largest ferrous scrap exporter, recorded a slight decline in export volumes in the first half of CY'23. The country shipped a total of 8.56 million tonnes (mnt) of scrap during this period, down 2% y-o-y compared to 8.72 mnt in H1CY'22.

Export figures were lower in the January-June period, primarily due to limited interest and inquiries from major buyers such as Vietnam, Mexico, and Greece. Buyers turned to alternative sources like the UK, South America, and Africa due to moderate demand. Notably, reduced import volumes from South Asian countries like Bangladesh and Pakistan contributed significantly to the decline in exports by the USA. However, India's imports showed a significant growth during the period under review.

Furthermore, exports in the second quarter of 2023 (April-June) reached 4.55 mnt, increasing by 13% from 4.01 mnt exported in the first quarter of CY'23.

Similarly, US exports decreased by 34% m-o-m in June to 1.28 mnt compared to 1.95 mnt in May, as per SteelMint data.

Country-wise exports

• Exports to Bangladesh decline: Bangladesh, a major buyer of US ferrous scrap, witnessed a 26 % decline in imports which reached 0.67 mnt in H1CY'23 as against 0.90 mnt in the year-ago period. Notably m-o-m volumes also dropped by 35% to 0.11 mnt compared to 0.17 mnt in May.
  
  
• Shipments to Taiwan down 6%: Taiwan's imports from the US declined by 6% in H1 to 0.64 mnt compared to 0.68 mnt in H1CY'22. Similarly, volumes declined by 9% m-o-m to 0.1 mnt as against 0.11 mnt in May.
  
  
• Mexico top importer: Mexico, a prominent purchaser of US ferrous scrap, emerged as the top importer during the period, with shipments increasing by 4% in H1 to 2.05 mnt compared to 1.98 mnt in the same period of 2022. However, the country witnessed a significant m-o-m drop of 76% in total imports. Shipments were assessed at 0.20 mnt in June compared to 0.82 mnt in May.
  
  
• Exports to Turkiye up 4%: Imports by Turkiye rose by 4% during the first half of the year to reach 2.04 mnt, up from 1.97 mnt in the first half of the previous year. Turkiye's imports of US ferrous scrap doubled to 0.49 mnt in June from 0.24 mnt in May. However, overall first-half import volumes dropped 22% to 9.60 mnt compared to 12.27 mnt in H1CY'22.
  
  

Outlook
The outlook on scrap exports from the US remains positive in the near term due to diverse supply options, particularly with Mexico and Canada as accessible destinations for US cargoes. Turkiye and India also continue to remain leading importers of US ferrous scrap.