Ferrous scrap exports from the US the world’s largest supplier of the material rebounded by 29% m-o-m to 1.64 million tonnes (mnt) in April 2022 as against 1.27 mnt in March, as per customs data.
On a year-on-year (y-o-y) basis, export volumes increased by 2% compared to 1.61 mnt in April 2021.
Country-wise unloading
- Active buying in Mexico: Mexico retained its position as the top importer of US-origin bulk scrap. Exports to Mexico surged almost 38% to 0.44 mnt in April as against 0.32 mnt a month ago, as per data compiled by SteelMint.
Notably, Mexico imported the highest volume of ferrous scrap in the last five years.
- Exports to Turkey surge: Turkey stood as the second-largest bulk scrap buyer of US material. The country imported 0.43 mnt in April compared to 0.29 mnt in the previous month. Imported scrap shipments resumed after a lull last month due to a supportive finished steel market.
Ferrous scrap prices rise in March: SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $642/t CFR Turkey in March from $502/t CFR February. Although the prices increased, exports surged for fulfilling restocking needs of buyers ahead of the upcoming holidays of Ramadan in May.
Outlook
It is expected that export volumes may witness a drop next month as negotiations are absent from both sides with market participants preferring to retreat to the sidelines. Suppliers are targeting to keep prices on the higher side, while importers keep postponing their bookings in the hope that prices would fall.
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