Global Scrap Trade: China's a Net Exporter!

Steel Market Update performs this analysis of global scrap trade each quarter to help readers understand the gyrations of the domestic scrap market and where the U.S. stands as a global player. This data is not very current because some nations are slow to report, but we still believe it gives a valuable perspective on global trends and is the foundation of where we are today. Most notable in the data is that China has become a net exporter of scrap, which has major implications for the global scrap market.

To set the scene, Figure 1 shows total scrap exports from the U.S. as reported by the U.S. Department of Commerce on the right axis together with the major destinations reported on the left axis. It shows the monthly average for the years 2004 through 2016 and the three-month moving average for January through October 2017. Year to date through October, U.S. scrap exports are up by 17.6 percent from the same period in 2016. The increase compared to 2015 is similar, and 2017 is approaching the rate for 2014. Exports are well down from the rate experienced in the years 2008 through 2013.