UK Ferrous Scrap exports to South Asia advance sharply
LONDON (Scrap Register): UK Ferrous Scrap exports to South Asia rose strongly in the second and third quarters of current year, offsetting a decline in sales to Turkey as suppliers moved to diversify their overseas markets.
Onset of the lira crisis in Turkey was one of the factors which drive the Turkey-South Asia shift, crisis weakened the Turkish domestic market's steel demand and increased difficulty for exporters and steelmakers to obtain letters of credit for scrap deals.
Ferrous Scrap exports to South Asia rose by a quarter over April-September to 1.18mn t. Shipments to South Asia accounted for around 26pc of UK exports in April-September, up from 20pc a year earlier.
UK suppliers shipped a combined 195,000t of Ferrous Scrap to India, Pakistan and Bangladesh in September, a 118pc increase from September 2017.
Pakistan and Bangladesh were strong growth markets for UK scrap exports throughout 2017 and early 2018, but sales to India fell during that period.
That weakness has now reversed, with UK Ferrous Scrap exports to India spiking by 277pc in September from a year earlier to 83,000t, making it the second-largest UK overseas market during that month.