The USA – world’s largest ferrous scrap supplier, observed a decline in scrap exports in CY’20. The country imported 16.55 mn t in CY’20, (down by 5% y-o-y) against CPLY, as per data maintained with SteelMint.
However, on a monthly basis, export volumes at 1.18 mn t, marked a decrease by 19% m-o-m in Dec’20.
- Exports to Turkey marginally up in CY’20 – Turkey continued to be the largest scrap importer from USA in CY’20 at 4.03 mn t (marginally up by 3% y-o-y). SteelMint’s assessment of USA origin HMS 1&2 (80:20) stood at $290/t CFR Turkey in CY’20, up by 2% from $285/t CFR Turkey in CY’19. Ferrous scrap export prices from the US had begun to rebound by the end of 2019, driven by a prolonged period of strong deep-sea scrap restocking in October and November by Turkish steelmakers.
Other major buyers like Mexico stood at 2.04 mn t, (up by 44%) and Malaysia at 1.57 mn t, (up by 76%) in CY’20.
- Lower Steel output & improvement in finished steel market in 2020 – USA crude steel production for CY’20 was 72.7 mn t, down by 17% y-o-y, finished steel consumption grew marginally in CY’20 according to the World Steel Association.
Electric arc furnace steelmaking capacity witnessed growth throughout the US and Southeast Asia in CY’19 and continue to provide underlying support to scrap consumption in CY’20 also.
Outlook – US ferrous scrap exporters expect the current robust market to persist into early 2021, with the longer-term outlook troubled by rising blast furnace capacity in Asia and the possibility of Chinese ferrous scrap imports from the US.
Leave a Reply