In May’18, scrap exports from USA and Belgium fell to half volumes while Netherland’s scrap exports increased 33% M-o-M to Turkey.
Turkey-world’s largest scrap importer has witnessed 9 months lowest ferrous scrap imports in May. As per recent customs data, Turkey imported 1,650,673 MT ferrous scrap in May’18 however, earlier to this lowest monthly imports were recorded at 1,562,832 MT in Aug’2017.
Turkey’s scrap imports in May’18 witnessed a fall of 13% M-o-M as against 1,900,820 MT ferrous scrap imports in Apr’18.On yearly premises, Turkey’s scrap imports fell by 21% Y-o-Y in Apr’18 as against 2,100,430 MT ferrous scrap imports in May’17.
Monthly average imported scrap prices declined in May’18 – After observing stable prices in the first half, Turkey witnessed fall in scrap prices in the second half of May’18. The monthly average import price for USA origin HMS (80:20) moved down to USD 345/MT, CFR in May’18 as against USD 352/MT in Apr’18.
Fall in scrap imports in May’18 could be attributed to range bound imported scrap prices, weak finish steel demand in the country, economic uncertainty and sharp devaluation of Turkish currency Lira against USD. Moreover, major suppliers like USA and Belgium witnessed halved exports M-o-M to Turkey in May.
In line with this, Turkey imported 621,782 MT billet and pig iron, down 8% M-o-M in May’18. Sharp fall in finish steel demand could have affected scrap as well as semi finish steel imports in May’18.
Netherland supplied highest volumes of ferrous scrap to Turkey in May’18 – Netherland exported highest 238,882 MT ferrous scrap registering 33% M-o-M rise in May’18 against 183,819 MT exports in Apr’18 to Turkey. USA stepped down to second largest exporter’s position and supplied 232,198 MT (-50% M-o-M) ferrous scrap to Turkey.
Russia stepped up to third largest position and supplied 231,924 MT ferrous scrap followed by other prominent exporters like United Kingdom (179,760 MT, -33% M-o-M), Belgium (133,615 MT, -50% M-o-M) and Canada (115,745 MT, +197% M-o-M)respectively in May’18.
Country-wise Turkey ferrous scrap imports –
| Country | May’18 | Apr’18 | % M-o-M Change | May’17 | % Y-o-Y Change | Jan-May’18 | Jan-May’17 | Y-o-Y % Change |
| United States | 0.23 | 0.46 | -50.00% | 0.38 | -39.47% | 1.68 | 1.38 | 21.74% |
| United Kingdom | 0.18 | 0.27 | -33.33% | 0.26 | -30.77% | 1.29 | 1.12 | 15.18% |
| Russia | 0.23 | 0.19 | 21.05% | 0.17 | 35.29% | 1.04 | 0.65 | 60.00% |
| Netherland | 0.24 | 0.18 | 33.33% | 0.32 | -25.00% | 0.99 | 1.14 | -13.16% |
| Belgium | 0.13 | 0.26 | -50.00% | 0.21 | -38.10% | 0.97 | 0.98 | -1.02% |
| Others | 0.64 | 0.54 | 18.52% | 0.76 | -15.79% | 2.95 | 2.74 | 7.66% |
| Total | 1.65 | 1.90 | -13.16% | 2.10 | -21.43% | 8.92 | 8.01 | 11.36% |
Quantity in MnT,
Source: SteelMint Stats
Turkey scrap imports up 11% Y-o-Y during Jan-May’18 – Turkey imported 8.92 MnT ferrous scrap during Jan-May’18, up 11% Y-o-Y against 8.01 MnT imports recorded during the same period last year. Increasing steel production from EAF outputs and considerable exports of finish steel from country has resulted in the higher volumes of scrap imports this year as against last year in Turkey.
During Jan-May’18, United States supplied highest (1.68 MnT, +22% Y-o-Y) occupying 19% share in total ferrous scrap imports in Turkey. United Kingdom supplied 1.29 MnT (+15% Y-o-Y) and remained the second highest exporter to turkey, following which other major exporters were Russia, Netherland and Belgium occupying 12%,11% and 11% share respectively.
According to the data released by World Steel Association, crude steel production in Turkey stood at 15.85 MnT during first five months in CY18, up marginally by 4% Y-o-Y as against 15.19 MnT produced same period last year. Turkey witnessed sharp increase (+19% Y-o-Y) in EAF based crude steel output as compared with BF route crude steel (+2% Y-o-Y) output in CY17.
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