Turkey Steel Import Statistics: Aug’19

Turkey, the world’s largest ferrous scrap importer, has observed a sharp increase in coal, iron ore & semi finish imports in July’19. Whereas, ferrous scrap, finish flat & long imports decreased in the month.

According to world steel association, Turkey’s crude steel output slightly declined in Aug’19 and stood at 2.63 MnT, down by 10% M-o-M as compared to 2.93 MnT in July’19, Meanwhile on a yearly basis too, the production fell from 3 MnT during the same period a year ago, down by 12% Y-o-Y.

Ferrous scrap: Imports of ferrous scrap to Turkey declined in Aug’19 and were recorded at 1.48 MnT, decreasing by 19% M-o-M as compared to 1.83 MnT in July’19. Meanwhile, on a yearly basis too, it has observed a decrease by 21% Y-o-Y from 1.89 MnT during the same period a year ago.

The average price for imported scrap to Turkey sharply increased during the end of June’19 and beginning of July’19, as the assessment for HMS 1&2 (80:20) from USA climbed up by around USD 20/MT during this period, reaching USD 300/MT CFR Turkey, by early July’19. The sharp volatility in prices could have resulted in decreased bookings for Aug’19 shipments.

Country-wise: USA was the largest supplier of ferrous scrap in Aug’19, with a share of 20% in total imports to Turkey. The country supplied 0.29 MnT in Aug’19, dropping by 14% M-o-M as against 0.34 MnT imported in July’19. Followed by other prominent suppliers like Russia (0.2 MnT, down by 28%) & United Kingdom (0.18 MnT, down by 14%) with a share of 13% & 12% respectively in Aug’19.

Coal: Turkish coal imports have increased 36% M-o-M to 3.44 MnT in Aug’19, which were also 14% higher on the year from 3.01 MnT in Aug’18. A spurt in demand for non-coking coal shipments had helped Turkey attain its highest total for CY19 during the month. Imports of non-coking coal rose 68% M-o-M to 2.8 MnT in Aug’19, recording its highest total since Oct’18. However, a fall in the coking coal receipt had eventually lowered Turkey’s coal sourcing from Australia. Otherwise, there was a significant rise noted in imports from major sources.

Country-wise: Colombia overtook Russia to become the largest coal supplier to Turkey. Colombian exports attain a 13-month high total of 1.85 MnT in Aug’19. Russian coal exports were marked 4% higher on the month at 0.99 MnT in Aug’19. Turkey’s coal receipt from Australia fell 19% M-o-M to 0.35 MnT in Aug’19. Incidentally, no imports were noted from the country in the year-ago month.

Iron ore: Turkey iron ore imports in Aug’19 witnessed at 0.93 MnT, up 26% as against 0.74 MnT in July’19. On a yearly basis, imports dropped 14% as compared to 1.08 MnT in Aug’18.

Country-wise: Turkey imports from Brazil picked up sharply for the month to 0.58 MnT, against 0.24 MnT in July’19. Imports from Brazil picked up amid easing concerns from largest iron ore miner Vale. Sweden stood as the second-largest importer at 0.17 MnT. Imports from India picked up sharply to 0.12 MnT against nil a month ago.

Semi Finished: The country’s semi finish steel imports showed a sharp growth by 103% M-o-M to 0.56 MnT in Aug’19 as compared to 0.29 MnT of imports reported in July’19. On a yearly basis, semi-finish imports increased by 86% Y-o-Y from 0.3 MnT as compared to the same period in the preceding year, July’18.

Country-wise: Russia remains the largest supplier to Turkey as it exported 0.33 MnT of semi finish steel in Aug’19 witnessed an increase by 135% M-o-M as against 0.14 MnT semi finish steel exported in June’19. Another major exporter was Brazil which exported 0.10 MnT in Aug’19 as compared to nil volume reported in the last three consecutive months.
Followed by Ukraine which supplied 0.09 MnT of semi-finish steel, decreasing by 18% in Aug’19 as against 0.11MnT imported in July’19.

Finish Flat: Bearing a decline of 17% Turkey’s finish flat imports have come down to 5,34,226 MT in Aug’19 in comparison with 6,46,547 MT in the preceding month. The sentiments of Turkish importers have dampened amid falling steel prices on a global scale along with weak demand in the domestic market.

Further, the national currency Turkish Lira continues to remain weak against USD since Aug’18 when the US imposed 50% trade tariffs under Section 232. However, not much of an improvement has been witnessed since May’19 when the US slashed its trade tariffs to 25% on Turkish imports.

Hence, importers have turned cautious and keep a wait and approach, which in-turn led to a decline in the nation’s imports in Aug’19.

Country-wise: Turkey’s imports from Russia plunged by 18% M-o-M in Aug’19 to 1,51,575 MT as compared to1,85,114 MT in the preceding month. Import volumes from France rose by 11% M-o-M to 77,127 MT, followed by a decline of 2% M-o-M from Ukraine at 58,496 in Aug’19. Meanwhile, imports from other major nations like Germany and Romania stood at 54,301 MT (down 13% M-o-M) and 24,562 (down 23% M-o-M) respectively in Aug’19.

Finished Long: Finish long imports have observed a decrease by 50% M-o-M to Turkey. As it imported 0.04 MnT in Aug’19 as compared to 0.06 MnT finish long steels in July’19. On a yearly basis, finish long imports decreased by 25% Y-o-Y as against 0.08 MnT during the same period in the preceding year.

Country-wise: Spain supplied the largest quantity of finish long at 0.01 MnT in Aug’19, witnessing a decrease by 100% M-o-M as against 0.02 MnT exported a month ago in July’19. Followed by the other suppliers like United Kingdom & South Korea supplied a decent quantity of finish long steel in Aug’19.

Quantity in MT
Source- SteelMint Stats & Customs Data