Exports from the USA – world’s largest ferrous scrap supplier, shot up by 27% m-o-m to 1.47 mn t in Oct’20 as against last month, amid a surge in shipments to Turkey, Bangladesh and Mexico.
However, on a yearly basis, export volumes registered a total of 1.52 mn t, marking a decrease by 3% during CPLY.
Turkey remained the top importer – Turkey, the top buyer of US ferrous scrap, abruptly rose by 95% in Oct’20 to 0.37 mn t from 0.19 mn t in Sep’20. Turkish steel mills were looking to replenish inventories after backing away from the deep-sea. Overseas buyers booked cargoes actively for October shipments, anticipating an increase in finished steel demand.
Import prices for USA origin HMS 1&2 (80:20) to Turkey rose $10/t from $285/t CNF Turkey in Aug’20 to $295/t CNF Turkey in Sep’20.
Turkey steel mills were very active during August-September with a series of deep-sea cargo deals getting concluded from USA and European origins at increased prices.
Bangladesh buyers’ expectations were not workable for US suppliers. Due to higher domestic prices in the US, imported scrap offers remained on a higher side. The monthly average price for US shredded scrap in bulk stood at $331/t CFR Chittagong in Sep’20 (marginally up by 3%) as compared to $322/t CFR Chittagong in Aug’20.
Several Vietnamese mills also shifted preference for US deep-sea cargoes from the end of May when Japanese H2 prices began rising rapidly. SteelMint’s monthly average price assessment for bulk HMS (80:20) offers from USA stood at $305/t, CFR in Sep’20, up by 7% from $286/t CFR Vietnam in Aug’20.
Quantity in mn t
Source: SteelMint stats & customs data
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