Turkey scrap slump drives US exports elsewhere

US bulk ferrous scrap exports likely rose in February as shipments to irregular destinations, including Brazil and Italy, offset lower volumes to Turkey.

US bulk shipments rose by 14pc to an estimated 756,000t in February from a year earlier, according to Argus analysis of vessel tracking data. Argus observed 18 likely bulk ferrous scrap ships departing the US in February, based on port and dock locations, vessel type, size and destinations.

US exporters looked to varied buyers for the February shipment period as the dominant Turkish market steadily declined in January, when the bulk of bookings would have been made. The Argus assessment for HMS 1/2 80:20 cfr Turkey fell by $35/t to $268/t over the course of January.

Italy likely purchased a 57,000t bulk ferrous cargo from Camden, New Jersey, in February, the first from the US since March 2019.

Brazil also likely received 55,000t from Camden in February, its first from the US since August 2018. Newark, New Jersey, also shipped 37,000t vessel to Peru, arriving on 11 March.

East coast exporters shipped two cargoes to Mexico in the period, with one from Newark and another from Boston.

Turkish cargoes accounted for 180,000t in February 2020, down by 39pc from a year ago. That number could grow as a 58,000t vessel is scheduled to arrive at Gibraltar on 10 March. Ships indicating Gibraltar as their destination typically proceed to final destinations in Turkey, Greece or the Middle East.

US exports to Turkey will likely increase in March, reflecting at least 10 sales concluded during February.

On the west coast, estimated bulk exports to South Korea were around 102,000t, a 46pc drop from February 2019, consisting of cargoes from Oakland, California, and Longview, Washington.

Vietnamese purchases of US bulk scrap fell by 42pc to 37,000t in February 2020.

Bulk exports to Bangladesh ticked up by 13pc to 36,000t.

An additional 109,000t of bulk scrap is scheduled to arrive in Singapore through March. Singapore, like Gibraltar, often serves as a mid-voyage stop on shipments from the US west coast head to south Asia ports.

Vancouver, Washington state, exported around 32,000t to Thailand in February, up from none a year earlier.

On the US Gulf coast, a 37,000t cargo from Tampa, Florida, was the lone vessel tracked from the region during the month.

West coast ports accounted for 280,000t of estimated bulk exports on the month. East coast ports supplied 320,000t.

US Department of Commerce will release official February 2020 statistics on 2 April 2020.

By Will Ehrhardt