United States: Ferrous Scrap Imports Rise 20% in July

USA – world’s fourth-largest importer of ferrous scrap after Turkey, South Korea and India has witnessed considerable rise of 20% M-o-M in Jul’18. As per recently released customs data, United States imported 466,485 MT ferrous scrap in Jul’18 as against 389,415 MT ferrous scrap imports recorded in Jun’18.

On yearly premises, US scrap imports surged by 52% Y-o-Y as against 309,120 MT ferrous scrap imports noted in Jul’17. USA had witnessed second lowest volume of scrap imports in July last year.

Port wise – Top unloading ports in United States for scrap import activities in July was Detroit (0.14 MnT) occupying highest 30% share. Followed by other major ports like New Orleans (0.10 MnT), Seattle (0.09 MnT), Buffalo (0.04 MnT), Charleston (0.03 MnT) and Pembina (0.03 MnT) occupying 21%, 19%, 9%, 6% and 6% respectively.

Canada remained the largest scrap supplier to United States in July – Canada remained the largest supplier to US in July occupying 64% share. Canada exported 296,854 MT, up 3% M-o-M as against 289,016 MT exports Jul’17. United Kingdom supplied 46,005 MT ferrous scrap in July observing sharp rise of 90% as against 24,217 MT last month. Followed by Mexico (37,854 MT, -10% M-o-M) and Netherland (31,168 MT, up significantly). While other prominent suppliers like Spain (24,884 MT) and France (26,899 MT) have observed scrap exports to US increased sharply against nil volume in the last month.

Notably, US witnessed significantly surged imports from two major suppliers United Kingdom and Netherland in July . However, these exporters had witnessed sharp plunge in scrap exports to US in earlier months of this year (H1’18) over the impact of strict trade regulations on steel import tariffs. Also, US imposed similar tariffs on earlier exempted major suppliers like Canada and Mexico from 1st June retaining scrap imports almost at same levels from these suppliers.

United States crude steel output hit year high in July – According to the data released by World Steel Association, during first seven months of CY18, US crude steel production has recorded highest in July. US produced 7.275 MnT crude steel in Jul’18, up 3% as against 7.057 MnT in Jun’18.

US scrap imports marginally up during Jan-Jul’18 – United States imported 2.74 MnT ferrous scrap in during Jan-Jul’18, marginally up by 2% Y-o-Y as against 2.68 MnT during Jan-Jul’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. Crude steel production in United States stood at 49.33 MnT Jan-Jul’18 as compared to 47.64 MnT recorded during Jan-Jul’17.

Country-wise United States ferrous scrap imports –

Quantity in MnT,
Source: Customs Data