The US, the largest global supplier of ferrous scrap, exported 1.59 million tonnes (mn t) in Mar’21 as against 1.34 mn t in Feb’21. The volumes are up 19% month-on-month (m-o-m), as per data maintained with SteelMint. However, on a year-on-year (y-o-y) basis, export volumes increased 15% compared to 1.38 mn t seen in the month of Mar’20.
Rise in Turkish imports: Imports by Turkey, a major buyer of US ferrous scrap, rose by 64% in Mar’21 to 0.46 mn t compared to 0.28 mn t in Feb’21. Turkey’s higher imports were fuelled by the positive outlook in the overseas steel market and the manufacturing sector which allowed the country to achieve sustained growth in sales by its steel mills. SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $439/t CFR Turkey in Mar’21, up by 5% from $418/t CFR Turkey in Feb’21. Other major buyers of US scrap in Mar’21 were Mexico and Taiwan at 0.33 mn t and 0.15 mn t respectively.
Shipments to Bangladesh fall: U.S. scrap export shipments to Bangladesh were down a sharp 64% to 0.04 mn t in Mar’21 as against 0.11 mn t in Feb’21. Deals slowed down due to the gap between offers and bids against the backdrop of hiked imported scrap prices. Meanwhile, ocean bulk freight charges from the US to Bangladesh increased around $8-10/t for Mar’21 shipments.
Improvement in finished steel market boosts exports: The United States produced 7.1 mn t of crude steel in Mar’21, marginally up by 1% y-o-y. Supportive finished steel demand and increasing steel prices boosted bulk scrap bookings for Mar’21 shipments. Steelmakers believe there is room for more scrap deals to fulfill the end-users’ demand.
Outlook
In Apr’21, exports will likely increase since mills have already restocked cargoes before the Eid holidays.
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