USA ferrous scrap exports marked a marginal decline m-o-m in Nov’20. USA exported 1.45 mn t in Nov’20, down by 1% from 1.47 mn t in Oct’20, as per customs data recorded with SteelMint. Tight availability amid lower collection rates due to winters led to lower exports.
Turkey, which is the biggest importer from USA, witnessed a decrease of 12% to 3.88 mn t during 11 months from 3.47 mn t in the CPLY. Similarly, exports to Turkey were down by 8% m-o-m in Nov’20. In the period between September to October, Turkey steel mills were looking to replenish inventories after backing away from the deep-sea and overseas buyers actively booked cargoes anticipating a rise in finish steel demand.
US scrap export shipments to Bangladesh lowered by 35% to 0.13 mn t in Nov’20 from 0.20 mn t in Oct’20.
Imported scrap prices for USA origin HMS 1&2 (80:20) to Turkey fell by $10/t from $300/t CNF Turkey in Sep’20 to $290/t CNF Turkey in Oct’20. However, prices rebounded to $440/t later in Dec’20.
Incidentally, USA produced 66.7 mn t of crude steel during Jan-Nov’20, registering a decrease by 18% y-o-y.
Outlook – Ferrous scrap offers from yards are likely to remain on the higher side in the near short term. However high seas sales have turned the market sentiments a little bearish.
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