United States: Ferrous Scrap Imports Hit 8 Years High in May

Sharply increased scrap consumption in steelmaking has led to a significant rise in scrap imports in the country.

USA – world’s fourth-largest importer of ferrous scrap after Turkey, South Korea and India has witnessed significant rise of 73% M-o-M in its scrap imports in May’18 as against imports registered in Apr’18. As per recently released customs data, United States imported 566,438 MT ferrous scrap in May’18 as against 327,281 MT ferrous scrap imports recorded in Apr’18.

On yearly premises, imports increased by 55% M-o-M as against 365,430 MT ferrous scrap imports recorded in May’17. Notably, ferrous scrap imports to USA in May’18 recorded highest ever since 2010 according to customs data maintained with SteelMint. Thus, USA scrap imports hit last 8 years high in May’2018.

Top unloading ports in United States for scrap import activities in May were New Orleans (196,160 MT) occupying highest 35% share. Followed by other major ports like Detroit (139,683 MT), Seattle (85,520 MT), Buffalo (39,944 MT), Charleston (31,914 MT) and Laredo (26,321 MT) occupying 25%, 15%, 7% 6% and 5% share in total scrap imports respectively.

Canada remained the largest scrap supplier to United States – Canada supplied highest 326,545 MT ferrous scrap occupying almost 58% share in total scrap imports in May’18. United Kingdom stepped up to second largest exporter position and exported 90,683 MT in May’18 after witnessing nil scrap exports to US successively for three month since Feb’18.

South Africa exported 40,771 MT ferrous scrap to USA in May’18 as against minor volume in earlier years. Followed by other prominent exporters like Mexico (41,174 MT), Netherland (31,536 MT) and Sweden (31,155 MT) occupying 7%, 6% and 6% share in total scrap imports in May’18.

Notably, USA imposed same tariffs on earlier exempted allies Canada, Mexico and EU-28 effective from 1st Jun’18 which could result in slowdown in scrap imports in US.

USA ferrous scrap imports fell marginally Y-o-Y during Jan-May’18 – United States imported 1.88 MnT ferrous scrap in during Jan-May’18 as against 1.94 MnT during Jan-May’17. High global scrap prices and slowdown in activities over the impact of stricter trade regulations on steel imports under section 232 in US could be attributed to decrease in scrap purchases during Jan-May’18 as against last year.

Canada remained the largest supplier to US in first five months of CY18 occupying 70% share. Canada exported 1.32 MnT, up 5% Y-o-Y as against exports during the same period last year followed by Mexico (0.17 MnT, 70% Y-o-Y), United Kingdom (0.13 MnT, -57% Y-o-Y), Netherland (0.10 MnT, stable Y-o-Y) and Sweden (0.09 MnT, -25% Y-o-Y) respectively.

United States crude steel output increased 3% in Jan-May’18 – According to the data released by World Steel Association, crude steel production in United States stood at 34.84 MnT this year as compared to 33.88 MnT recorded during Jan-May’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