US ferrous scrap exporters ramped up dry bulk shipments in September by finding buyers in a greater diversity of countries, including the second cargo to India recorded so far this year.
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US ferrous scrap bulk exports were 400,658 mt in September, up 3.8% from August and an increase of 46.5% from September 2021, according to data from S&P Global Commodities at Sea.
Turkey received the largest share of US bulk exports in September, receiving three cargoes totaling 97,962 mt, all from Rye, New York-based recycler Sims Metal Management. But the September total was down from 121,510 mt shipped to Turkey in August, as sharp increases in Turkish electricity prices pushed Turkish mills to cut production and search for lower-priced scrap supplies from Europe.
US exporters also shipped Handysize bulk cargoes of ferrous scrap in September to South Africa, Mexico, Ecuador, China, Australia, India and two cargoes each to Canada and Peru.
The Indian cargo was 36,487 mt of ferrous scrap loaded on the Anshun bulk carrier Sept. 2 in Los Angeles by Orange, California-based SA Recycling and was set to discharge in Chennai on Oct. 8. It was the second US ferrous scrap bulk cargo shipped to India in 2022 since a 44,817 mt cargo from Boston to Deendayal port, Gujarat, discharged Aug. 26, according to Commodities at Sea.
Indian ferrous scrap importers have pivoted to buying more bulk cargoes due to the cost advantages compared to containerized imports as shipping rates for the latter increased, and have actively sought out more bulk imports from Europe as well.
Platts Indian imports of containerized shredded scrap assessment averaged $451.30/mt CFR Nhava Sheva over September, according to data from S&P Global Commodity Insights. By comparison, reported bookings of bulk shredded cargoes ranged between $410-$428/mt CFR India over the same month, with these cargoes set to arrive in October and early November, and thus have not yet been reflected in CAS data.
US exporters shipped 181,296 mt of ferrous scrap to Bangladesh by dry bulk carrier in August, exceeding export volumes to Turkey that month, but there were no reported US bulk shipments to Bangladesh in September, according to Commodities at Sea.
The Platts TSI HMS 1/2 (80:20) CFR Turkey index averaged $364.15/mt in September, down from $389.20/mt in August, according to S&P Global Commodity Insights.