China increases its presence in the US scrap sector in 2023

A year-end review of statistics calculated by the U.S. Census Bureau and collated by the U.S. Geological Survey shows buyers from China increased their presence in the nonferrous scrap export market in 2023 compared with the year before.

In the ferrous scrap recycling sector, meanwhile, the most notable statistic of 2023 might be the overall 9.2 percent drop in recycled steel shipped from the U.S. compared with 2022.

By percentage generated, copper-bearing scrap was the most heavily exported recycled commodity from the U.S. compared with aluminum and steel. More than 875,000 metric tons of copper-bearing scrap were exported from the U.S. in 2023, nearly equaling the 906,000 metric tons consumed in melt shops.

Of the exported total (878,100 metric tons), 39.7 percent was shipped to China (including Hong Kong). The nearly 350,000 metric tons sent from the U.S. to China represented 19.5 percent of the copper-bearing scrap collected in the U.S. last year as measured by the export and domestic melt shop combined total.

The total shipped to China also marks nearly a 12 percent increase compared with the 291,900 metric tons sent from the U.S. to China in 2022.

Last year, nations that competed with China for American copper and brass scrap and their metric ton volumes included India (73,350), Malaysia (72,170), Thailand (67,176) and South Korea (39,460.)

Chinese melt shops did not receive as much American aluminum scrap, measured by either volume or percentage.

Unlike with copper, the U.S. does not ship out nearly half the aluminum scrap it collects. In 2023, it exported 33.6 percent of its generated aluminum scrap. While domestic furnaces melted 4.06 million metric tons (MMT) of such scrap last year, some 2.06 MMT left by sea container or went over the border to Canada or Mexico.

Of that 2.06 MMT exported, China (including Hong Kong) received 212,000 metric tons, or about 10 percent. The Chinese figure equates to about 3.5 percent of aluminum scrap collected in the U.S. last year.

However, aluminum scrap exports from the U.S. to China rose by 39.5 percent in 2023. In 2022, Chinese ports accepted 152,000 tons of aluminum scrap from the U.S.

Four nations purchased more American aluminum scrap than China in 2023: India (452,000 metric tons), Malaysia (361,000 metric tons), South Korea (275,000 metric tons) and Thailand (224,000 metric tons).

China largely is removed from the ferrous scrap export picture in the U.S. The nation accepted 204,000 metric tons of U.S. ferrous scrap in 2022 but last year received only 19,000 metric tons, representing a 91 percent decline.

Turkey dominates as a buyer, followed by four other nations that purchased at least 1 million metric tons of U.S. recycled steel in both 2022 and 2023.

Although the U.S. shipped out 9 percent less scrap in 2023 compared with the prior year, it was not because of Turkey. That nation’s ports accepted 3.86 MMT of U.S. recycled steel last year, up 21 percent from the 3.18 MMT purchased in 2022.

Taiwan also maintained its purchasing levels last year, buying 1.12 MMT of U.S. ferrous scrap, up by nearly 11 percent from its 2022 volume.

Nations with declining purchase levels last year, however, included Mexico (2 MMT received in 2023, down 24.2 percent); India (1.58 MMT, down 9.2 percent); Bangladesh (1.35 MMT, down 12.3 percent); and Malaysia (136,000 metric tons, down 74 percent).

Even though the U.S. is a scrap surplus country, it did import some nonferrous and ferrous scrap in 2023, predominantly from its U.S.- Mexico-Canada (USMCA) trade agreement partners.

Of the 677,000 metric tons of aluminum scrap that came in last year, the vast majority—a combined 615,000 metric tons, or 90.8 percent—came from Canada and Mexico. The next largest shippers and their metric ton volumes were Guatemala (9,850), Germany (7,050), Colombia (6,930), and South Africa (6,530).

Nearly 119,000 metric tons of copper-bearing scrap entered the U.S. in 2023 and, as with aluminum, Canada and Mexico were responsible for most of it (105,600 metric tons, or 88.9 percent). Other contributors and their metric ton volumes were the Dominican Republic (2,350), Honduras (1,927), Costa Rica (1,849) and Panama (1,588).

About 5.13 MMT of ferrous scrap entered U.S. ports in 2023, with 69.4 percent (3.56 MMT) coming from Canada and 763,000 metric tons, or 14.9 percent, arriving from Mexico. Other shippers and their metric ton volumes included Sweden (256,000), Netherlands (174,000), Germany (121,000) and the United Kingdom (119,000).