Canada : Ferrous Scrap Exports in June Hit 5 Years High

Canada- one of the world’s major scrap exporters has witnessed sharp rise in its scrap exports in CY18. As per recent customs data, Canada exported 524,214 MT ferrous scrap in Jun’18 registering a rise 23% M-o-M as against 427,314 MT ferrous scrap exports recorded in May’18.

Notably, according to SteelMint’s data, Canadian scrap exports in Jun’18 recorded highest during last five years since 2013. Earlier to this, highest exports were recorded at 484,493 MT in Dec’2017. On yearly premises, exports increased by 23% Y-o-Y as against 427,781 MT exports recorded in Jun’17.

Second largest importer Turkey resumed imports in June after witnessing nil scrap imports on economic uncertainty during May month which could be one of the reason behind increased scrap exports in Jun’18 from Canada.

USA remained the largest importer of Canadian ferrous scrap – USA remained largest importer occupying highest 55% (289,016 MT, -12% M-o-M) share in total scrap exports in Jun’18. Followed by other major importers like Turkey (155,023 MT), Mexico (36,000 MT, +20% M-o-M), Taiwan (11,078 MT, stable M-o-M) and India (9,963 MT, +49% M-o-M).

The country witnessed growing ferrous scrap exports in CY18 despite the high global average scrap export prices as compared to last year prices which could be attributed to increased demand from other major importers like Taiwan, India, Bangladesh and Vietnam.

Canadian scrap exports increased 16% Y-o-Y during Jan-Jun’18 – Canada exported around 2.39 MnT ferrous scrap in the first half of CY18 as against 2.06 MnT exports recorded during Jan-Jun’17.

On quarterly basis, Canadian scrap exports rose 39% Q-o-Q to 1.39 MnT in Q2 2018 as against 1.00 MnT in Q1 2018.

USA imported 1.60 MnT ferrous scrap occupying 70% share of total scrap exports from Canada during Jan-Jun’18. Turkey remained second-largest scrap importer (0.39 MnT) with a significant increase of 50% Y-o-Y as against 0.26 MnT during the same period last year.

Followed by other major exporters like Mexico (0.12 MnT, +33% Y-o-Y), Taiwan (0.06 MnT, +50% Y-o-Y), Brazil (0.06 MnT, up against minor volumes last year) and India (0.04 MnT, +300% Y-o-Y). Other prominent importers like Bangladesh and Vietnam imported 0.03 MnT and China imported 0.02 MnT from Canada.

According to World Steel Association, Canada produced 6.48 MnT crude steel during Jan-Jun’18, down marginally as compared to 6.63 MnT crude steel produced during the same period last year. Marginal fall in crude steel output along with increasing domestic generation of scrap could have led to an increase in scrap exports from Canada.

Country-wise Canada ferrous scrap exports –

Quantity In MnT,
Source: SteelMint Stats