Turkey-world’s largest scrap importer has witnessed marginal rise in its ferrous scrap imports in July on the monthly basis. As per recent customs data, Turkey has imported 1,905,751 MT ferrous scrap in Jul’18, up 4% M-o-M as against 1,832,547 MT imports noted in Jun’18. Turkey observed fall in scrap prices in July on dull demand in finish steel and depreciated currency lira against USD.
On yearly basis, imports decreased by 5% Y-o-Y in Jul’18 as against 2,021,595 MT ferrous scrap imports recorded in Jul’17.
The monthly average import price for USA HMS (80:20) stood at USD 342/MT, CFR in Jul’18 as against USD 350/MT in Jun’18. Also, Turkey observed fall in billet imports by 17% M-o-M in Jul’18 to 278,071 MT as against 335,490 MT in Jun’18.
Fall in global scrap prices, decline in billet imports and rise in crude steel production in July could be attributed to rise in scrap imports in Turkey. However, imports likely to come down on slowdown in purchases in August on sharp currency depreciation in Turkey.
In Jul’18, United Kingdom scrap exports to Turkey surged for the second consecutive month sharply. UK stood at the largest exporter position surpassing USA in Jul’18. UK supplied highest 382,424 MT ferrous scrap, up 73% M-o-M occupying 20% share in total scrap imports. Followed by Russia (270,963 MT, -9% M-o-M), Netherland (206,172 MT, -6% M-o-M) and Belgium (169,131 MT, +12% M-o-M) occupying 14%, 11% and 9% share.
USA ferrous scrap exports decreased sharply to half on monthly basis to Turkey. USA moved down to 5th largest supplier position in Jul’18 from the topmost in Jun’18.USA supplied 150,962 MT ferrous scrap in Jul’18 as against 304,058 MT in Jun’18.
Turkey scrap imports rise 12% during Jan-Jul’18 – Turkey imported 12.66 MnT ferrous scrap in Jan-Jul’18 as against 11.32 MnT ferrous scrap imports during Jan-Jul’17 witnessing a rise 12% Y-o-Y. Considerably rising scrap imports could be a result of high usage of scrap in EAF steel outputs in Turkey. Although, global imported scrap prices remained high as against last year and billet imports increased this year in Turkey.
According to the data released by World Steel Association, crude steel production in Turkey stood at 22.16 MnT during Jan-Jul’18 which is marginally up by 3% Y-o-Y compared to 21.56 MnT during H1 2017, while up 8% M-o-M to 3.27 MnT in Jul’18 as against 3.04 MnT in Jun’18 with increasing EAF outputs.
United States remained largest scrap exporter to Turkey during Jan-Jul’18 – United States supplied highest (2.13 MnT, +12% Y-o-Y) occupying 17% share in total ferrous scrap imports in Turkey. United Kingdom supplied 1.89 MnT, up 17% Y-o-Y ferrous scrap and remained as the second highest exporter to turkey, followed by other major exporters like Russia (1.61 MnT, +46% Y-o-Y), Netherland (1.41 MnT, stable Y-o-Y) and Belgium (1.29 MnT, -4% Y-o-Y).
Country-wise ferrous scrap imports Turkey –
| Country | Jul’18 | Jun’18 | % Change M-o-M | Jul’17 | % Change Y-o-Y | Jan-Jul’18 | Jan-Jul’17 | % Change Y-o-Y |
| United States | 0.15 | 0.30 | -50.00% | 0.40 | -62.50% | 2.13 | 1.91 | 11.52% |
| United Kingdom | 0.38 | 0.22 | 72.73% | 0.35 | 8.57% | 1.89 | 1.61 | 17.39% |
| Russia | 0.27 | 0.30 | -10.00% | 0.27 | 0.00% | 1.61 | 1.10 | 46.36% |
| Netherlands | 0.21 | 0.22 | -4.55% | 0.15 | 40.00% | 1.41 | 1.43 | -1.40% |
| Belgium | 0.17 | 0.15 | 13.33% | 0.14 | 21.43% | 1.29 | 1.35 | -4.44% |
| Others | 0.73 | 0.64 | 14.06% | 0.71 | 2.82% | 4.33 | 3.92 | 10.46% |
| Total | 1.91 | 1.83 | 4.37% | 2.02 | -5.45% | 12.66 | 11.32 | 11.84% |
Quantity in MnT,
Source: SteelMint Stats
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