Ferrous scrap imports moved up 8% y-o-y in H1 CY’ 20. Scrap stock replenishment made in Jun’20 through aggressive bookings made by mills are likely to keep import volumes high in Jul’ 20.
Turkey, the world’s largest ferrous scrap consumer, observed a slight rise in scrap imports by 8% during H1 CY’ 20. Imports stood at 9.70 mn t during Jan-Jun’20 as against 8.99 mn t during H1 CY’ 19 according to SteelMint customs data.
Similarly, on a monthly basis, scrap imports have increased by 31% m-o-m to 1.53 mn t in Jun’ 20 against 1.16 mn t imported a month ago in May’ 20.
Imports from US fell 10% m-o-m in Jun’20 – USA, one of the leading ferrous scrap suppliers with 20% of share in total scrap imported from Turkey in H1 CY’ 20, the country exported 1.96 mn t in H1 CY’ 20, up by 21% as against 1.62 mn t in H1 CY’ 19. However, on monthly basis, imports fell by 10% m-o-m to 0.29 mn t in Jun’20 due to tight availability.
According to IREPAS, Turkish scrap inventories were depleted in May as industry closures meant low scrap availability. Jun’20 buying surpassed the levels for a normal month as scrap needed to be restocked.
Turkish imports of coal, semi-finished and finished flat steel witnessed an increase, whereas iron ore and finished long products imports showed a decline in H1 CY’ 20.
Coal: Turkish coal imports have increased by 3% to 19.92 mn t during the first half year period of H1 CY ’20 as against 19.43 mn t recorded in the corresponding period of previous year. After witnessing higher imports in the first quarter amid restrictions on domestic lignite usage and strong coal-fired generation margins, coal intake had dipped in the subsequent months due to COVID-19 led demand slump. Colombia remained the largest coal exporter to Turkey during the half year period. The country had supplied 8.79 mn t coal during H1 CY’ 20 which was 7% higher on the year from 8.21 mn t noted in H1 CY’ 19.
However, making a strong recovery during June, imports surged by 59% m-o-m to 3.97 mn in Jun’ 20 as compared to 2.51 mn t in May’ 20.
Iron Ore: Iron ore imports to Turkey observed a decline by 19% to 4.42 mn t in H1 CY’ 20 as against 5.48 mn t in H1 CY ’19. Brazil exported 2.44 mn t of iron ore in H1 CY’ 20 moved down by 17% in comparison to 2.92 mn t exported a year ago. Other suppliers like Sweden and Ukraine exported 1.14 mn t and 0.07 mn t respectively in H1 CY’ 20.
Similarly, iron ore imports have reported decline by 21% m-o-m to 0.68 mn t in Jun’ 20 as against 0.87 mn t a month ago.
Semi-Finished: The country’s semi-finished imports witnessed a significant increase by 23% in H1 CY’ 20. The country has exported 2.46 mn t in H1 CY’ 20 in comparison to 2 mn t in H1 CY’ 19. Russia remains the largest supplier to Turkey with 14% of share in total semi-finished steel exported in H1 CY’ 20.
On the other hand, semi-finished import volume showed a sharp increase by 116% m-o-m in Jun’ 20 from 0.30 mn t in May’ 20.
Finished Flat: Turkey’s finished flat steel imports registered an increase by 2% in H1 CY ’20 aggregating to 3.44 mn t as compared to 3.37 mn t in H1 of the previous year. The COVID pandemic related lock-downs resulted in dull demand in various countries and led to an increase in Turkish steel import volume. In H1 CY ’20 the country wise imports from Russia fell by 23% to 0.78 mn t as against 1.01 mn t in the previous year. From France, the import volume increased by 14% and stood at 0.33 mn t in H1 CY’ 20 against the previous year’s 0.29 mn t. Imports from Ukraine in H1 CY’ 20 were reported at 0.38 mn t, up by 23% over 0.31 mn t in H1 CY ’19. Imports rose significantly by 139% from South Korea to 0.43 mn t in H1 in contrast with 0.18 mnt in the preceding year, and the imports from France were up by 14% in H1 to 0.33 mn t.
On the other hand, the import volumes jumped by 64% to 0.78 mn t in Jun ’20 in contrast with 0.48 mn t a month ago.
Finished Long: Finish long imports to Turkey observed a decline by 26% to 0.32 mn t in H1 CY’ 20 as against 0.43 mn t in H1 CY ’19. Spain exported at 0.13 mn t of finish long in H1 CY’ 20 sharply moved up by 115% in comparison to 0.06 mn t exported a year ago. Other countries like Russia and South Korea exported 0.02 mn t and 0.01 mn t respectively in H1 CY’ 20.
Similarly, on a monthly basis, import volumes increased by 32% to 0.05 mn t in Jun ’20 in contrast with 0.03 mn t a month ago.
Quantity in t
Source: SteelMint stats and customs data
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