NorthAm bulk ferrous scrap exports slide in April

Bulk ferrous scrap export volumes from the US and Canada likely inched down in April from a year ago, as increased tonnages to Turkey did not offset lower shipments from the US west coast to Asia.

North American shippers exported an estimated 665,000t of bulk ferrous scrap in April, a 7pc drop from the same month last year according to Argus analysis of vessel tracking data. Argus observed 18 likely bulk cargoes that departed North American ports in April, based on port and dock locations, vessel type, size and destinations.

During the period in which April-delivery sales were likely concluded, the Turkish scrap import market for HMS 1/2 80:20 fell by $70/t from 1-27 March in reaction to the Covid-19 pandemic. Prices rebounded by $45/t to $250/t by 9 April as scrap supply became more scarce globally amid Covid-19-related lockdowns.

The timing of departing vessels indicated most US cargoes were sold during the latter portion of this timeframe as the Turkish prices reversed its decline, with 10 of the 18 departures captured by Argus setting sail on or after 21 April.

Argus assessed the Turkish HMS 1/2 80:20 import market at $241/t on 1 May, a $15.70/t drop since the most recent peak on 16 April.

Six probable scrap vessels sailed to Turkey in April, increasing exports by 29pc to 260,000t compared to 2019. Three other vessels, accounting for 120,000t, are currently headed for Gibraltar, a mid-trip point for ships bound for Turkey, Greece, or the Middle East.

Two ships sailed from Tampa, Florida, to Mexico in the month with an estimated 70,000t of scrap, up from none in April a year ago.

A bulk vessel carrying 30,000t headed to Pakistan from Oakland, California, in April — a rare purchase for the country, which typically buys containerized scrap.

A 35,000t vessel also left Oakland for South Korea, the only shipment to that country in April. South Korean-bound cargoes subsequently dropped by 59pc on the year.

A 30,000t vessel departed Los Angeles for Peru, marking a 17pc increase in bulk scrap exports to the country from a year earlier.

Two vessels totaling 85,000t departed Los Angeles in April for Singapore, a mid-voyage point for cargoes usually headed for India or Bangladesh

US east coast bulk volumes slipped by 13pc to 320,000t from a year prior, while west coast exports were down by 34pc to 215,000t. Gulf coast export volumes nearly tripled from April 2019 to 70,000t. One 60,000t vessel tracked by Argus departed the Canadian port of St John in New Brunswick for Turkey.

By Will Ehrhardt