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INDUSTRY REPORT: Shipping shaping up? July 2016

Ferrous scrap export tonnages increased in May over April, fell back a bit in June, are down again year-over-year.

There was both some encouraging and discouraging news on the U.S. ferrous scrap export front as the official record keeping on the first half of the year closed in August. For the first time in a year, monthly tonnages exported crested over 1 million tonnes for two months in a row: Ferrous scrap tonnages were over 1 million for both May and June, the first time that had happened since May and June of 2015. And counting those two months, monthly tonnages had surpassed the 1 million mark in 17 of the previous 18 months, going all the back to February 2014. But they then fell under that mark for four of the last six months of 2015 and three of the first four months of 2016 before May’s figures.

But the bad news is that even though June exceeded the million tonne mark, it still was down 275,548 tonnes, or 21 percent, compared to May, according to U.S. Commerce Department data. While Canada, India and Taiwan saw significant June drops, Turkey
came in a shocking 83 percent decrease. The month-long holiday of Ramadan – which fell during June 5-July 5 this year – often plays a major role in depressing Turkish scrap buys. However, it remains to be seen what effects, if any, July’s failed coup will have. Many in the U.S. market still expect to see upswings from Turkey when the rest of the summer numbers come in from Commerce in September and after.

For the year to date through June, about 5.8 million tonnes have been shipped, compared to about 6.9 million tonnes for the first six months of 2015, or a decrease of roughly 16 percent.

This content is provided by AMM Events for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.