United States: Ferrous Scrap Imports Fall 33% Y-o-Y in April

USA – world’s fourth-largest importer of ferrous scrap after Turkey, South Korea and India has witnessed significant fall of 33% Y-o-Y in its scrap imports in Apr’18 as against imports registered that of in Apr’17. As per recently released customs data, United States imported 327,281 MT ferrous scrap in Apr’18 as against 490,056 MT ferrous scrap imports recorded in Apr’17.

On monthly premises, imports dropped by 10% M-o-M as against 364,774 MT ferrous scrap imports recorded in Mar18. Majorly the stricter regulations on steel imports and sharply increased domestic scrap consumption have led to a decline in scrap imports in the country.

Top unloading ports in United States for scrap import activities in April were Detroit (114,301 MT) occupying highest 35% share. Followed by other major ports like Seattle (59,651 MT), Buffalo (44,747 MT), New Orleans (32065 MT) and Laredo (18,263 MT) occupying 18%, 14%, 10% and 6% share in total scrap imports respectively.

Canada remained largest scrap supplier to United States in Apr’18 – Canada supplied highest 258,313 MT ferrous scrap occupying almost 79% share in total scrap imports in Apr’18. Followed by other prominent exporters like Mexico (33,953 MT) and Sweden (31,949 MT) both occupying 10% share in total scrap imports in Apr’18 however,

Over the impact of strict trade regulations and import tariffs imposed on steel imports under section 232, UK witnessed nil scrap exports to US successively for the third month since Feb’18. Netherland and Spain witnessed nil scrap exports to US in Apr’18. On the other hand, major suppliers like Canada and Mexico which were already exempted from US import tariffs have observed less effect on scrap exports to US in Apr’18. Notably, USA imposed same tariffs on Canada, Mexico and EU-28 effective from 1st Jun’18 which could result in slowdown in scrap imports in  US.

USA scrap imports fell 17% Y-o-Y during Jan-Apr’18 – United States imported 1.31 MnT ferrous scrap in during Jan-Apr’18 as against 1.57 MnT during Jan-Apr’17. The fall in ferrous scrap imports in US could be attributed to decrease in scrap purchases amid weakened supply from major exporters.

Canada remained the largest supplier to US in first four months of CY18 occupying 76% share. Canada exported 0.99 MnT, stable as against exports during the same period last year followed by Mexico (0.13 MnT, 63% Y-o-Y), Netherland (0.06 MnT, -40% Y-o-Y), United Kingdom (0.04 MnT, -84% Y-o-Y) and Sweden (0.12 MnT, +300% Y-o-Y) respectively.

United States crude steel output increased marginally in Jan-Apr’18 – According to the data released by World Steel Association, crude steel production in United States stood at 27.75 MnT as compared to 26.98 MnT recorded during Jan-Apr’17. Increasing EAF outputs in US are resulting in improving demand for high grade imported scrap and domestic consumption in US as compared with last year.

Country-wise United States ferrous scrap exports –

Quantity in MnT
Source: SteelMint Stats