US ferrous scrap imports from Mexico hit new record ahead of possible tariffs

US ferrous scrap imports from Mexico reached a new record high in January, according to the latest trade data available, while imports from Canada fell to a three-year low, according to S&P Global Market Intelligence's Global Trade Atlas on March 31.

Total US ferrous scrap imports were 216,368 mt in January, down 15% from December and a drop of 24% from January 2024. Imports from Canada in January were 157,746 mt, the lowest level since January 2022 and down 0.9% from December, and a drop of 16% from January 2024.

Meanwhile, US ferrous scrap imports from Mexico were 57,582 mt in January, an all-time high, according to US customs data going back to 1990. While the three-year low in Canadian imports was likely due to harsh winter weather disrupting obsolete scrap collections, import volumes from Mexico set multiple monthly records in 2024 as busheling volumes steadily increased to 41,488 mt in January, just below the 45,774 mt received from Canada in the same month.

The administration of US President Donald Trump announced on March 4 a 25% tariff on all imports from Canada and Mexico, then on March 6 suspended the imposition of those tariffs until at least April 2, pending a review of which products will be subject to tariff exemptions, potentially including ferrous scrap.

US pig iron imports were 630,907 mt, the highest level since the same month last year at 648,564 mt and an increase of 82% from December. Brazil was the top supplier with 341,903 mt, followed by Ukraine at 181,500 mt, but the January import volume also included 55,000 mt received from Indonesia and 52,358 mt from India.

The weekly US pig iron import price was last assessed by Platts at $477/mt CIF New Orleans on March 28, down $3/mt from one week earlier.

US ferrous scrap exports were 941,896 mt in January, up 22% from December and an increase of 7.8% from January 2024. Turkey was the top destination for US scrap exports in January at 282,077 mt, up 60% month over month and up 33% year over year, followed by Bangladesh at 97,595 mt, up 78% month over month and up 49% year over year.

US export prices for shredded scrap were assessed by Platts at $377/mt FOB US East Coast on March 31, down $2.50/mt on day.

Platts is part of S&P Global Commodity Insights.