USA: Ferrous scrap exports rise 7% in Jan-Nov'21

The US, the world's largest ferrous scrap supplier, saw a 7% y-o-y rise in exports of the material to 16.51 million tonnes (mn t) in Jan-Nov'21 as against 15.37 mn t in Jan-Nov'20, as per customs data compiled by SteelMint.

Turkey was the top importer with 3.22 mn t in this period, followed by Mexico and Malaysia with 2.92 mn t and 1.36 mn t, respectively.

However, on a m-o-m basis, exports fell by 9% to 1.33 mn t in Nov'21 against 1.46 mn t in October.

Factors pushing up exports -

• Active Turkish buying: Turkey, the largest seaborne consumer of scrap, remained the top importer of US scrap in Jan-Nov'21. Turkish mills turned active in booking deep-sea cargoes on rising interest owing to strong demand for billets and long steel products.
  
  
• Rise in shipments for Pakistan: Pakistan, the leading ferrous scrap importer in South Asia, procured 0.67 mn t from the US in Jan-Nov'21 as against nil imports in the same period last year. Pakistani buyers increased US scrap procurement on reasonable offers.
  
  

Furthermore, the country was largely focused on infrastructure development in CY'21 which boosted its scrap demand.

• Active bulk bookings from Bangladesh: Total scrap imports into Bangladesh stood at 1.29 mn t in Jan-Nov'21. Decline in scrap offers from US-based suppliers attracted Bangladeshi buyers to prefer US-origin material over others, especially Japan.
  
  
• Ferrous scrap prices show uptrend: SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $463/tonne (t) CFR Turkey in Jan-Nov'21, witnessing a rise of $188/t from $275/t CFR Turkey, in Jan-Nov'20.
  
  

Outlook:
It is expected that the US ferrous scrap exports market may continue to see further improvement owing to resumption of construction activities in the major buying countries and restocking in December ahead of the New Year holidays.