South Africa’s ferrous scrap exports rose by 85pc to 71,264mt in November from 38,479mt in the prior year, according to the South Africa Revenue Service (SARS). Shipments to the South Asian markets of India, Bangladesh and Pakistan accounted for 89pc of the total exports in November.
During Jan-Nov 2019, South Africa exported 446,003mt ferrous scrap, up 2pc from 436,912mt in the prior year.
Ferrous scrap exports to India hit a three-year high in October due to increased availability coupled with robust demand for South African scrap. Indian steelmakers preferred to import South African scrap to restock ahead of year-end lull. India remained the main destination for South African ferrous scrap with 73pc share of the export volumes in November. South Africa exported 52,371mt of ferrous scrap to India in Nov 2019, up 53.8pc from 20, 704mt in the prior year and marginally up from 50,348mt in Oct 2019.
Other large export destinations were Pakistan and Bangladesh; importing 6,575mt and 4,770mt, down by 19pc and 34pc, respectively in November compared to the prior year. Weaker domestic steel prices reduced ferrous scrap enquiries in Pakistan and Bangladesh.
ArcelorMittal SA (AMSA) announced on Nov 11 that it would wind-down operations and place its 1.25mn mt/yr Saldanha Steel conarc steelmaking facility in the Western Cape province, South Africa, on care and maintenance until a complete closure in Q1 2020. The closure of the Saldanha works created a surplus of steelmaking raw materials, particularly ferrous scrap and iron ore.
South Africa exported 5.66mn mt Iron ore in November from 5.11mn mt in Oct 2019 and 5.68mn mt in Nov 2018.