Canada: Ferrous Scrap Exports Fall 10% in July

Canada- one of the world’s major scrap exporters has been witnessing considerable rise in its scrap exports in CY18. However, as per recent customs data Canadian scrap exports declined by 10% M-o-M in Jul’18 as against exports recorded last month. Canada exported 471,025 MT ferrous scrap in Jul’18 as against 524,214 MT exports recorded in Jun’18. Notably, Canadian monthly scrap exports were recorded at 5 years high in Jun’18 since 2013 resulting in edge down of exports on slowdown in global demand in Jul’18.

On yearly premises, Canadian exports rose sharply by 74% Y-o-Y as against 271,733 MT ferrous scrap exports recorded in Jul’17. The country had observed second lowest scrap exports in July in CY17, while imports from USA and Turkey increased significantly in Jul’18 as compared with last year.

Demand from second largest importer Turkey remained dull in July on sharp currency devaluation and price uncertainty, following which other major importers like Mexico, Taiwan and India witnessed fall in imports from Canada.

USA remained the largest importer of Canadian ferrous scrap – USA remained largest importer occupying highest 63% (296,854 MT, +3% M-o-M) share in total scrap exports in Jul’18. Followed by other major importers like Turkey (102,500 MT, -34% M-o-M), Guatemala (29,700 MT), Bangladesh (13,667 MT, +85% M-o-M), Taiwan (7,614 MT, -31% M-o-M) and India (7,232 MT, -27% M-o-M).

Canada’s crude steel production rise 4% in July – According to World Steel Association, country’s crude steel production recorded at 1.02 MnT in Jul’18 as against 0.98 MnT in Jun’18. Rising scrap consumption in steel making could have supported fall in scrap exports despite of sharp rise in iron ore exports in July. Canada exported 4,837,297 MT iron ore in Jul’18, up significantly by 142% M-o-M as against 1,995,700 MT in Jun’18.

Canadian scrap exports increased 23% Y-o-Y during Jan-Jul’18 – Canada exported around 2.86 MnT ferrous scrap in the first seven months of CY18 as against 2.33 MnT exports recorded during Jan-Jul’17.

Canada produced 7.50 MnT crude steel during Jan-Jul’18, down 3% as compared to 7.76 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.

The country witnessed growing ferrous scrap exports in CY18 despite of high average scrap export prices as compared to last year. On similar notes, the demand for premium quality scrap usually supplied by leading recyclers in Canada has increased significantly from other major importers like Taiwan, India, Bangladesh and Vietnam on rising scrap based steel production in CY18.

Country-wise Canada ferrous scrap exports –

Quantity in MnT,
Source: Customs Data