According to the US Geological Survey, the United States aluminium scrap exports continued to decline, marking the second consecutive month of fall in July 2024. The export volume decreased 2.32 per cent month-on-month to 168,000 tonnes versus 172,000 tonnes in June 2024. Also, on a year-on-year basis, the United States aluminium scrap exports reflected a downfall of 2.89 per cent from 173,000 tonnes.
As the above graph indicates, the back-to-back decline in the United States aluminium scrap exports in September 2024 was primarily contributed by India and Malaysia, the two largest importers of aluminium scrap from the United States. Even though the two countries remained the top importers of scrap from the United States in September, their volume decreased month-on-month.
Delving deeper into the export trend
According to the US Census Bureau statistics, the United States aluminium scrap exports to India plunged by 20.19 per cent M-o-M, compared to an 8.05 per cent decline in the previous month. From 44,700 tonnes in May, the export volume decreased to 41,100 tonnes in June and further contracted to 32,800 tonnes in July.
On a year-on-year basis, India’s aluminium scrap imports from the United States in July 2024 dwindled by 23.54 per cent from 42,900 tonnes. This downtrend could be attributed to the ongoing problems in the Red Sea region, a vital trade route for India. Houthi rebels have been carrying out missile and drone attacks on cargo ships in the Red Sea, leading to supply-chain disruptions and delays in shipments. India’s trade flows through the Red Sea, so the crisis has taken a toll on India’s imports from the United States.
India’s total aluminium scrap imports in the first seven months of 2024 also decreased year-on-year from 274,000 tonnes to 247,000 tonnes.
Malaysia, the second-largest aluminium scrap export destination for the United States, sourced 29,400 tonnes, down by 6.66 per cent M-o-M from 31,500 tonnes. In the previous month, the United States scrap exports to Malaysia decreased by 11.52 per cent from 35,600 tonnes. However, the export volume slightly increased on an annual basis by 1,000 tonnes from 28,400 tonnes.
Despite the second consecutive month of decline, Malaysia remained the second-largest importer of aluminium scrap from the United States. In seven months, Malaysia’s aluminium scrap imports amounted to 221,000 tonnes, up 1.84 per cent from 217,000 tonnes.
Export destinations with a positive trend
Besides India and Malaysia, the other significant destinations for the United States aluminium scrap exports include Thailand, South Korea, and China (including Hong Kong), ranking as the third, fourth, and fifth largest scrap importers from the US. Unlike India and Malaysia, these three destinations demonstrated a steady or increased volume of scrap imports from the US.
Thailand imported 27,000 tonnes of aluminium scrap from the US in July 2024, compared to 22,800 tonnes in June. That reflected a month-on-month increase of 18.42 per cent, found the USGS data. Annually, the import volume climbed up by 50 per cent from 18,000 tonnes, leading to a Y-o-Y growth of 53.78 per cent in Thailand’s total imports through the first seven months of 2024.
China (including Hong Kong) imported 17,800 tonnes of aluminium scrap from the United States in July 2024 versus 15,100 tonnes in June, marking a 17.88 per cent gain month-on-month. However, on a Y-o-Y basis, China’s scrap imports in July edged a fall of 5.82 per cent from 18,900 tonnes. Total imports in seven months also marked an annual fall from 129,000 tonnes to 114,000 tonnes.
In contrast, South Korea reflected no significant upward movement in its aluminium scrap imports from the US in July 2024. Month-on-month, the import volume stood majorly unchanged at 18,900 tonnes in July, compared to 19,100 tonnes in June. Annually, the import volume plunged by 20.59 per cent from 23,800 tonnes, resulting in a fall in total import volume through the seven months by 6.79 per cent to 151,000 tonnes versus 162,000 tonnes.
