Canada: Ferrous Scrap Exports Rise 50% in March

Canada- one of the world’s major scrap exporter has witnessed a sharp rise in its scrap exports in Mar’18. As per customs data, Canadian ferrous scrap exports increased in Mar’18 after witnessing two consecutive falls in its monthly ferrous scrap exports since Jan’18.

Canada exported 0.39 MnT ferrous scrap in Mar’18 which has grown by 50% M-o-M as against 0.26 MnT ferrous scrap exports in recorded Feb’18.

Canadian ferrous scrap exports also witnessed an increase of 39% on Y-o-Y basis in Mar’18 as against 0.28 MnT exports in Mar’17.

In Feb’18, Canadian scrap exports to Turkey and Mexico had paused on less clarity about the impact of the announcement of import tariffs on steel imports to US under section 232, these importers returned into the market in Mar’18. While demand from US also improved in Mar’18 in comparison with Feb’18 from Canada. Following which exports increased by upto 50% in Mar’18 from Canada.

The country witnessed growing ferrous scrap exports in Mar’18 despite strong prices on firm demand from importers like USA, Turkey, India and Taiwan. USA remained largest importer occupying highest 70% (0.27 MnT, +17% M-o-M) share in total scrap exports in Mar’18. Followed by other major importers like Turkey (0.05 MnT), Mexico (0.03 MnT), Taiwan (0.01 MnT) and India (0.01 MnT).

Canada scrap exports rose 24% Y-o-Y in Q1 2018 – Canada exported around 1 MnT ferrous scrap in Q1’2018 as against 0.81 MnT exports recorded in Q1’2017. On the other hand, Canadian scrap exports dropped by 21% Q-o-Q in Q1 2018 as against 1.26 MnT ferrous scrap exports in during the fourth quarter of 2017. Amid sharp rise in global scrap demand in Q4 2017, Canada recorded highest scrap exports in Q4 in CY17.

USA remained the largest importer of Canadian ferrous scrap in Q1’18 – USA imported 0.74 MnT ferrous scrap occupying 74% share of total scrap exports from Canada in Q1’2018. Turkey remained second-largest scrap importer with significant increase as against nil imports recorded in Q1 2017. Mexico and Taiwan both stood at the third largest buyer position and imported 0.03 MnT which remained stable Y-o-Y. Followed by India (0.02 MnT, +100% Y-o-Y) while other prominent importers like Bangladesh, Vietnam, Pakistan and China imported each 0.01 MnT respectively from Canada.

After the imposition of tariffs under US section 232, scrap exports to USA from Canada hardly got affected because Canada had already exempted from import tariffs under NAFTA agreement.

According to World Steel Association, crude steel production in Canada inched up in Q1 2018 against last year. Canada produced 3.48 MnT in Q1’18 compared to 3.46 MnT crude steel produced in Q1 last year. While crude steel production increased 5% M-o-M to 1.23 MnT in Mar’18 as against 1.17 MnT in Feb’18. Increasing domestic availability of scrap could have resulted in both crude steel production and scrap exports from Canada.

Country-wise Canada ferrous scrap exports –

Quantity In MnT,
Source: SteelMint Stats