Turkish Ferrous Scrap Imports Fall 9% Y-o-Y in CY’19

Turkey, world’s largest ferrous scrap importer has observed a decrease by 9% on a yearly basis in 2019. The country imported 18.83 MnT of scrap in CY’19 as compared to 20.62 MnT imported in CY’18, as per recent data released by the customs department.

On a monthly basis, scrap imports increased by 25% M-o-M as it imported 2.04 MnT in Dec’19 as against 1.63 MnT of scrap registered in Nov’19.

United States remained the largest supplier to Turkey during CY’19 with a 20% share of total scrap imported by Turkey. The country supplied 3.84 MnT scrap in CY’19, increasing by 4% Y-o-Y as against 3.70 MnT registered in CY’18. Netherlands, another major scrap supplier, increased its scrap exports by 12% Y-o-Y, as it supplied 2.60 MnT in CY’19 as compared to 2.32 MnT exported in CY’18, with 14% share.

Followed by other major exporters such as the United Kingdom and Russia which supplied scrap 2.19 MnT (down by 17%) and 1.88 MnT (down by 25%) of scrap to Turkey, with 12% and 10% share respectively in CY’19.

Imports of iron ore, semi-finished and finish long decreased, while, finish flat imports increased during CY’19.

Coal: Turkey has witnessed a drop of 5% in annual coal imports registered during CY19, following a hefty decline in coal intake from the US. Data provided by Turkish customs indicate that the country had imported 41.86 MnT coal in CY19 as against 44.2 MnT in CY18.

Turkey’s coal intake from its chief supplier-Colombia decreased 3% Y-o-Y to 18.42 MnT in CY19 compared with 19.08 MnT in CY18. Whereas, coal receipt from second-largest exporter-Russia, increased 9% Y-o-Y to 13.83 MnT in CY19.

US coal exports to Turkey reduced to half during the year marked at 3.37 MnT in CY19 as against 6.76 MnT in CY18. Turkish coal buyers had turned towards the Australian market to cater to the residual volume, bringing in 2.9 MnT coal during CY19 at an impressive growth of 41% Y-o-Y.

Iron Ore: Turkey iron ore imports for CY19 witnessed 6% drop to 10.12 MnT, against 10.74 MnT in CY’18. The imports dropped for the year amid soaring global iron ore prices. The spot iron ore prices for the year increased to USD 94/MT, CFR China as compared to USD 70/MT, CFR China in CY18.

Monthly average global iron ore fines (Fe 62%) index price in July’19 witnessed highest for the year at USD 120/MT, CFR China. The prices for the month were hovering five year high levels at USD 126/MT, CFR China towards early July.

Brazil stood the largest exporter of iron ore to Turkey for the year at 5.6 MnT, up 21% Y-o-Y. Sweden stood second-largest exporter at 1.35 MnT followed by Canada at 1 MnT. Turkey imports from India recorded at 0.43 MnT for the year as compared to nil in CY’18.

For the month of Dec’19, Turkey iron ore imports marked at 0.98 MnT, up significantly on a monthly basis as compared to 0.47 MnT in Nov’19.

Semi Finished: The country registered a sharp decrease by 22% Y-o-Y to 4.55 MnT semi-finished imported in CY’19 as compared to 5.86 MnT in CY’18. Russia remained the largest supplier to Turkey, supplied 2.98 MnT (down by 2%). Followed by Ukraine supplied 0.80 MnT in CY’19 (down by 37%).

On a monthly basis, semi-finished imports witnessed a sharp increase by 189% M-o-M as it imported 0.74 MnT in Dec’19 as against 0.26 MnT in Nov’19.

Finish Long: Finish long imports to Turkey observed a drop by 11% to 0.74 MnT in CY’19 as against 0.83 MnT finish long imported during CY’18. Spain and Iran supplied the largest quantity of finish long products at 0.20 MnT (down by 17%) and 0.14 MnT (down by 180%) respectively in CY’19.

Finish long imports also increased by 17% on a monthly basis, as it imported 0.07 MnT in Dec’19 as against 0.06 MnT registered in Nov’19.

Finish Flat: The Turkish imports of finish flat steel products ascended by 2% to 7.18 MnT in Jan-Dec CY’19 in comparison with 7.05 MnT in a similar time frame of CY’18.The market sentiments in Turkey improved in the latter half of the CY’19.

However, the nation’s domestic demand remained sluggish in the first half of CY’19 since the automotive sector was under stress, which led to a marginal increase in the nation’s finish flat steel imports. Meanwhile, on a monthly premise, the imports surging by 28% stood at 0.77 MnT in contrast with 0.60 MnT in Nov’19.

Quantity in MT
Source: SteelMint Research & Customs Data