United States: Ferrous Scrap Imports Up 25% in March

USA – world’s fourth-largest importer of ferrous scrap after Turkey, South Korea and India has witnessed significant rise of 25% M-o-M in its scrap imports in Mar’18 as against imports registered that of in Feb’18. As per recently released customs data, United States imported 364,774 MT ferrous scrap in Mar’18 against 291,022 MT ferrous scrap imports recorded in Feb’18.

On yearly premises, scrap imports in Mar’18 plunged marginally by 8% Y-o-Y against 397,701 MT ferrous scrap imports recorded in Mar’17.

Increasing crude steel output through EAF has resulted in increased high-grade scrap imports and also increased domestic consumption of scrap by steel mills in US.

Canada remained the largest supplier of ferrous scrap to United States – Canada supplied highest 274,331 MT ferrous scrap to US occupying almost 75% share in total scrap imports in Mar’18. Followed by other prominent exporters like Netherland (37,199 MT), Mexico (29,780 MT) and Spain (22,009 MT) occupying 10%, 8% and 6% share in total scrap imports in Mar’18 respectively.

On M-o-M basis, major exporters like Canada and Netherland have witnessed 19% and 41% growth as against 230,465 MT and 26,292 MT ferrous scrap exports respectively to US during Feb’18.

Owing to the slowdown in import activities amid less clarity on import tariffs of US section 232, UK and Sweden witnessed nil scrap exports to US successively for the second month since Feb’18. While major suppliers like Canada and Mexico which are already exempted from US import tariffs have observed less effect on scrap exports to US in Mar’18.

USA scrap imports remained nearly stable in Q1 2018 on Q-o-Q basis – In Q1 2018, United States imported 0.99 MnT ferrous scrap, up by 2% Q-o-Q as against 0.97 MnT scrap exports recorded during the Q4 2017. On the other hand imports fell by 8% Y-o-Y as compared with 1.08 MnT ferrous scrap imports registered in Q1 2017.

During Q1 CY18, top unloading ports in United States for scrap import activities were Detroit (0.34 MnT) occupying highest 35% share. Followed by other major ports like Seattle (0.20 MnT), Buffalo (0.11 MnT), Charleston (0.09 MnT) and New Orleans (0.07 MnT) occupying 20%, 11%, 9% and 7% share in total scrap imports respectively.

Canada remained largest supplier to US in Q1 2017 occupying 75% share. Canada exported 0.74 MnT, up 4% Q-o-Q followed by Mexico (0.09 MnT, 13% Q-o-Q), Netherland (0.06 MnT, stable Q-o-Q), United Kingdom (0.04 MnT, -50% Q-o-Q) and Sweden (0.03 MnT, stable Q-o-Q) respectively.

United State crude steel output increased marginally in Q1 2018 – According to the data released by World Steel Association, crude steel production in United States stood at 20.74 MnT as compared to 20.29 MnT recorded during the first quarter of CY17. Increasing EAF outputs in US are resulting in improving demand for imported scrap in US as compared with last year.

Country-wise United States ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats