UK ferrous scrap exports fall by a tenth in March

Exports of ferrous scrap from the UK fell by 10pc in March as global markets began to impose lockdowns to tackle the spread of Covid-19, while the UK's key container ports saw an uptick in shipments.

UK scrap exporters shipped 720,818t of ferrous scrap in March, a 10.6pc decrease compared with the same month last year. The fall comes as many of the UK's key markets began to impose strict restrictions to curb the virus' spread throughout the month while global demand and activity began to dwindle as a result.

Scrap shipments to Turkey in March fell by 21.3pc on the year to 257,362t, the key driver behind the UK's overall decrease in shipments as the country is the UK's main overseas scrap market.

Overall exports to south Asia, another key region, was up on the year because of an 89pc increase in shipments to Pakistan, with 110,438t being shipped to the country. India also saw more UK scrap exports, with a 13.2pc rise to 88,458t. The uptick in shipments to these two markets more than offset the 19,924t exported to Bangladesh, a 66.1pc fall on the year.

Despite the higher volumes of scrap being shipped to south Asia, weaker trade to Turkey and a range of smaller European and Asia-Pacific markets resulted in an overall decline in shipments. While performance in the UK's top 10 key markets in March was mixed, with half seeing increased shipments (see graph).

Container trade rises in March

China's countrywide lockdown earlier this year caused congestion at its major ports. This set off a domino effect on global container supply that led to a shortage that has heavily affected parts of the container market.

Further lockdowns in the second half of March resulted in similar freezes globally, with Indian ports being particularly affected following the country's lockdown on 25 March that hit container trade into the market.

While the container market was affected towards the end of the month, total shipments out of the UK in March increased significantly.

Suffolk-based port Felixstowe shipped out 118,890t of ferrous scrap in March, a 20.1pc increase on the year, with first-quarter exports totalling 250,476t, representing a 3pc increase. Felixstowe, which is in southeast England, is the biggest and busiest container port in the UK, handling more than one-third of the UK's containers, according to a government report, and therefore is a key barometer of overall UK container exports.

Another key UK container port, London Gateway — to which exporters had previously begun moving their business — also registered a sharp uptick in March, with exports rising by 16.3pc to 63,779t. In the first quarter, London Gateway shipped out 203,519t of ferrous scrap, an 11.2pc rise on the year.

UK top 10 scrap export markets for March t