Ferrous Scrap Exports Out of the UK Take a Big Hit

SEATTLE (Scrap Monster): The UK Customs data published yesterday indicates significant decline in exports of ferrous scrap.

The exports of ferrous scrap totalled 145,327 tonnes in May this year, down by 81.2% when compared with those of same month a year before. The sharp fall in local scrap generation during the lockdown period led to decline in domestic scrap reserves. At the same time, the global scrap metal demand weakened, thereby leading to reduced exports.

The exports to Turkey- the traditionally largest destination market for UK scrap witnessed sharp downfall. The official data indicates that exports to that country dropped to 44 tonnes, as compared with 253,054 tonnes in the same month a year before. The exports to Egypt-another key export market destination, too plunged heavily from 16,500 tonnes in May 2019 to 178 tonnes in May this year.

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The shipments to Asian destinations-India and Bangladesh took a hit. The shipments to India were down by 89.8% to 8,472 tonnes, whereas those to Bangladesh dipped by 92.25% to 8,049 tonnes. The shipments to Pakistan witnessed lesser impact, with exports falling by 45.9% year-on-year to 43,792 tonnes.

On the other hand, the exports to traditionally smaller markets such as Italy, France, the Netherlands and Finland increased during the month.

The gradual easing of lockdowns in the UK and its key export markets are likely to result in increased ferrous scrap exports during the month of June.