USA – the world’s largest ferrous scrap supplier, exported 1.14 mn t in Jan’21, marginally lower on m-o-m basis, as per customs data recorded with SteelMint. Tight material availability amid lower collection rates and lesser availability of empty vessels impacted exports. Exports have slid to a two-year low since Jan’19 (0.99 mn t), as per data maintained with SteelMint.
1. Imports to Turkey rise, volumes for Mexico & Bangladesh fall – Turkey import scrap volumes stood at 0.26 mn t in Jan’21, rising sharply compared to 0.15 mn t in Dec’20. Finished steel prices also gained pace and was in an upward trend in December. The rise was due to Turkish steel mills’ continuous steel sales and the positive outlook of the overseas steel market and manufacturing industry.
Other major buyers of US scrap in Jan’21 were Mexico and Bangladesh at 0.22 mn t and 0.09 mn t respectively in Jan’21. Import volumes to Mexico and Bangladesh have witnessed a decline in Jan’21 on m-o-m basis.
Despite the low monthly export volumes, New York port accounted for the largest share of exports at 0.22 mn t followed by Philadelphia at 0.14 mn t.
2. Scrap prices shot up to a nine-year high in Dec’20 – SteelMint’s assessment of USA origin HMS 1&2 (80:20) stood at $435/t CFR Turkey in Dec’20, significantly up by 34% from $325/t CFR Turkey in Nov’20. Turkish steelmakers had accepted the high levels of imported scrap price as a sharp growth in other products like semi-finished and finished steel remain supported by imported scrap prices. Imported scrap prices had climbed to a nine-year high towards end Dec’20.
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