Canada: Ferrous Scrap Exports Edge Down in May

Canada- one of the world’s major scrap exporters has witnessed marginal drop in its scrap exports in May’18 on both monthly and yearly basis. Canadian ferrous scrap exports turned downward after observing two successive growth in its monthly ferrous scrap exports in May since Feb’18.

As per recent customs data, Canada exported 427,314 MT ferrous scrap in May’18 registering a marginal fall of 4% M-o-M as against 444,163 MT ferrous scrap exports recorded in Apr’18. On yearly premises, exports declined by 6% Y-o-Y as against 452,313 MT exports recorded in May’17. Notably, scrap exports in Apr’18 were recorded highest during the first five months of 2018.

In May’18, Canadian scrap exports to Brazil, Mexico and Taiwan remained nearly stable against exports during Apr’18. Scrap exports to USA from Canada haven’t affected on section 232 tariffs because Canada had exempted from import tariffs under NAFTA agreement earlier. However, from 1st June USA has imposed similar tariffs on Canada again.

USA remained largest importer occupying highest 76% (326,545 MT, +32% M-o-M) share in total scrap exports in May’18. While second largest importer Turkey imported nil volumes of scrap from Canada due to sharp slowdown in finish steel demand and economic uncertainty in Apr-May’18 in Turkey.

Followed by other major importers like Mexico (31,500 MT, +5% M-o-M), Brazil (30,000 MT, -9% M-o-M) and Taiwan (11,629 MT, +9% M-o-M). Bangladesh, India and Vietnam imported 7,670 MT, 6,707 MT and 5,720 MT ferrous scrap occupying total 5% share in Canadian scrap exports in May’18.

The country witnessed marginal fall in ferrous scrap exports in May’18, as the demand from Turkey abruptly plunged in April-May. While global average scrap export prices remained firm in the first half of May.

Canada’s scrap exports rose 15% Y-o-Y during Jan-May’18 – Canada exported around 1.87 MnT ferrous scrap in first five months of CY18 as against 1.63 MnT exports recorded during Jan-May’17.

USA remained the largest importer of Canadian ferrous scrap – USA imported 1.31 MnT ferrous scrap occupying 70% share of total scrap exports from Canada during Jan-May’18. Turkey remained second-largest scrap importer (0.24 MnT) with a significant increase of 60% Y-o-Y as against 0.15 MnT during same period last year. Followed by other major exporters like Mexico (0.09 MnT, stable Y-o-Y), Brazil (0.06 MnT, sharply up against minor volumes last year) and Taiwan (0.05 MnT, +25% Y-o-Y).

India, Bangladesh and Vietnam witnessed sharp growth in scrap imports from Canada – During Jan-May’18, India imported 33,746 MT scrap, up 48% Y-o-Y as against 22,749 during same period last year. Bangladesh imported 27,262 MT, up 21% Y-o-Y and Vietnam imported 21,749 MT, up 67% Y-o-Y from Canada as against Jan-May’17.

According to World Steel Association, Canada produced 5.62 MnT crude steel during Jan-May’18, up marginally as compared to 5.51 MnT crude steel produced during the same period last year. Increasing domestic availability of scrap could have resulted in growing both crude steel production and scrap exports from Canada.

Country-wise Canada ferrous scrap exports –

Quantity In MnT,
Source: SteelMint Stats