Canada: Ferrous Scrap Exports Fall 26% in February

Canada- one of the world’s major scrap exporter witnessed third consecutive fall in its monthly ferrous scrap exports in Feb’18. Canada had registered highest scrap exports in December month in CY17 however, since then ferrous scrap exports have dropped in Jan’18 (down 27% M-o-M) and Feb’18 (down 26% M-o-M) successively for two months.

As per customs data, the nation exported 0.26 MnT ferrous scrap in Feb’18, down 26% M-o-M as against 0.35 MnT exports recorded in Jan’17.On yearly premises, Canada witnessed marginal fall of 7% Y-o-Y in its ferrous scrap exports in Feb’18 as against 0.28 MnT exports in Feb’17.

In 2017, yearly scrap exports from Canada leaped above 4 MnT and recorded at 4.24 MnT the first time since 2015. During first two months of CY18, Canada exported 0.61 MnT ferrous scrap which has registered a growth of 15% Y-o-Y as against 0.53 MnT ferrous scrap exports recorded in the same period of last year.

Fall in ferrous scrap exports in Feb’18 to Canada could be attributed to nil imports registered from major importers like Turkey, Egypt, Pakistan and Vietnam. These importers remained silent over less clarity on USA import tariffs. After the imposition of tariffs under US section 232, scrap imports to USA from Canada hardly to affect as Canada has already exempted from import tariffs under NAFTA agreement. However, scrap exports from USA expected to fall amid which Asian countries are likely to increase imports from other major exporters like Canada, Russia and South Africa.

According to World Steel Association, crude steel production in Canada fell marginally by 5% in first two months of CY18. Canada produced 2.17 MnT in Jan-Feb’18 compared to 2.29 MnT crude steel produced in the same period of last year. Also increased domestic scrap consumption may have led to decrease in scrap export volumes.

Canadian scrap exports to USA remained stable in Feb’18 –

In Feb’18, Canada exported highest 0.23 MnT ferrous scrap to United States occupying 88% share of total scrap exports. United States remained largest importer along with stable scrap imports on M-o-M basis from Canada. While Turkey remained silent over less clarity on USA import tariffs in Feb’18. Turkey imports tumbled at nil volumes against 0.08 MnT in Jan’18. Followed by other major importers as India and Taiwan imported each 0.01 MnT (stable M-o-M) from Canada.

During Jan-Feb’18, USA imported highest 0.46 MnT ferrous scrap followed by other prominent importers like Turkey (0.08 MnT), Taiwan (0.02 MnT), India (0.01 MnT) and Pakistan (0.01 MnT) from Canada respectively.

Country-wise Canada ferrous scrap exports –

Quantity In MnT,
Source: SteelMint Stats