USA, the world’s largest ferrous scrap exporter, recorded a decline in exports by 4% m-o-m (month-on-month) in May 2022 compared to April. The country exported a total of 1.57 mnt (million tonnes) in May as against 1.64 mnt in the preceding month.
Negotiations dried up with market participants preferring to retreat to the sidelines. Suppliers focussed on keeping prices firm, while importers kept postponing their bookings due to unclear price movements.
Likewise, on a y-o-y (year-on-year) basis, exports dipped by 22% from 2.01 mnt in May, as per customs data accessed by SteelMint.
Country-wise shipments-
- Mexico top importer: Mexico, a prominent buyer of US ferrous scrap, retained its lead position. However, exports to Mexico fell almost 30% to 310,000 t in May compared to 440,000 t last month.
- Imports to Turkiye drop: Turkiye, a major buyer of bulk ferrous scrap, imported 190,000 t in May as against 430,000 t last month. Trading activities remained largely muted due to the Ramadan and Eid holidays. Also, due to weak finished steel and semi-finished steel demand, major mills postponed their bookings.
- Exports to Vietnam, Bangladesh surge: Vietnam showed an exponentional hike of 243% in scrap imports in May as against 70,000 t last month. Bangladesh imported 150,000 t in May vis-a-vis 80,000 t in April, up by around 88% m-o-m. Imports increased as mills needed to replenish material amid the slight decrease in bulk freight rates.
Outlook
Market participants expect that bookings will remain on the lower side due to limited buying interest and buyers are likely to wait a little longer for a clearer price direction to emerge.
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