United States: Ferrous Scrap Imports Fall Marginally in H1 2018

USA – world’s fourth-largest importer of ferrous scrap after Turkey, South Korea and India has witnessed marginal fall of 4% Y-o-Y in its scrap imports in H1’18 as against imports registered that of in H1’17. As per recently released customs data, United States imported 2.27 MnT ferrous scrap in during H1’2018 as against 2.37 MnT in H1’2017.

Port wise – Top unloading ports in United States for scrap import activities in H1’18 was Detroit occupying highest 32% share. Followed by other major ports like Seattle (18%), New Orleans (15%), Buffalo (11%), and Laredo (6%).

Canada remained largest scrap supplier to United States in H1’2018 – Canada remained the largest supplier to US in first half of CY18 occupying 71% share. Canada exported 1.61 MnT, up 3% Y-o-Y as against 1.56 MnT exports during the same period last year followed by Mexico (0.21 MnT, 75% Y-o-Y), United Kingdom (0.15 MnT, -59% Y-o-Y), Sweden (0.12 MnT, stable Y-o-Y) and Netherland (0.10 MnT, -23% Y-o-Y) respectively.

Over the impact of strict trade regulations and unceasing trade war for import tariffs on steel among leading countries, UK and Netherland witnessed sharp fall in scrap exports to US during H1 2018. On the other hand, major suppliers like Canada and Mexico which were already exempted from US import tariffs have observed less effect on scrap exports to US in Q2 2018.

United States crude steel output increased marginally in H1’18 – According to the data released by World Steel Association, crude steel production in United States stood at 41.85 MnT H1’18 as compared to 40.68 MnT recorded during Jan-Jun’17. Increasing EAF outputs in US are resulting in improving demand for high grade imported scrap and domestic consumption in US as compared with last year.

United States ferrous scrap imports down 32% M-o-M – United States imported 389,415 MT ferrous scrap in Jun’18, down 32% M-o-M as against 566,438 MT ferrous scrap imports recorded in May’18. Notably, US witnessed sharply increased imports in May on inflated exports from Canada, Mexico and EU-28 ahead the effect of import tariffs imposed from 1st Jun’18.

On yearly premises, imports dropped by 9% Y-o-Y as against 429,636 MT ferrous scrap imports recorded in Jun’17. High global scrap prices and increased in domestic scrap consumption could have resulted in fall in imports in Jun’18 as compared with earlier month.

Canada supplied highest 289,016 MT ferrous scrap occupying almost 74% share in total scrap imports in Jun’18. Followed by other prominent exporters like Mexico (42,102 MT), Sweden (30,178 MT) and UK (24,217 MT) occupying 11%, 8% and 6% share in total scrap imports in Jun’18.

Country-wise United States ferrous scrap imports –

Quantity in MnT
Source: SteelMint Stats