Turkey-world’s largest scrap importer has witnessed 11% decline in its ferrous scrap imports in Q1 2018 as against imports recorded in Q4 2017 on Q-o-Q basis. As per recent customs data, Turkey imported 5.36 MnT ferrous scrap in Q1’18 witnessing a fall of 11% against 6.03 MnT ferrous scrap imports during Q4 2017.
On yearly premises, Turkey’s scrap imports climbed significantly by 26% Y-o-Y to 5.36 MnT in Q1 2018 as against 4.25 MnT ferrous scrap imports in during the first quarter of 2017. In line with which, Turkey imported 1.50 MnT billets during Q1 2018 which increased 21% Y-o-Y as against 1.24 MnT billet imports in Q1 2017.
Marginal fall in scrap imports during Q1 could be a result of high imported scrap prices and a marginal rise in billet imports in Turkey. According to SteelMint’s average price index for USA origin HMS 1&2(80:20) scrap, average imported scrap price increased by USD 35/MT to USD 360/MT in Q1 2018 as against 325/MT, CFR Turkey during Q4 2017.
According to the data released by World Steel Association, crude steel production in Turkey stood at 9.54 MnT during Q1’18 which is marginally down by 3% Q-o-Q compared to 9.78 MnT during Q4 2017, while up 8% Y-o-Y as against 8.84 MnT during Q1 2017 with increasing EAF outputs.
However, after an announcement of tariffs on steel imports in USA, Turkey’s scrap import activities paused for 2-3 weeks in Mar’18 following which scrap imports in Apr’18 to Turkey are expected to fall significantly on M-o-M basis.
United States remained largest scrap exporter to Turkey – In Q1’18, United States supplied highest (0.99 MnT, +19% Y-o-Y) occupying 18% share in total ferrous scrap imports in Turkey. United Kingdom supplied 0.84 MnT ferrous scrap and remained the second highest exporter to turkey, followed by other major exporters like Russia (0.60 MnT), Belgium (0.57 MnT), Netherland (0.56 MnT) respectively.
Country-wise ferrous scrap imports to Turkey –
| Country | Q1 2018 | Q4 2017 | Q-o-Q % Change | Q1 2017 | Y-o-Y % Change | Mar’18 | Feb’18 | % Change |
| United States | 0.99 | 1.42 | -30.28% | 0.83 | 19.28% | 0.33 | 0.27 | 22.22% |
| United Kingdom | 0.84 | 0.93 | -9.68% | 0.59 | 42.37% | 0.33 | 0.31 | 6.45% |
| Netherland | 0.57 | 0.81 | -29.63% | 0.58 | -1.72% | 0.17 | 0.26 | -34.62% |
| Russia | 0.60 | 0.66 | -9.09% | 0.33 | 81.82% | 0.25 | 0.14 | 78.57% |
| Belgium | 0.56 | 0.29 | 93.10% | 0.55 | 1.82% | 0.25 | 0.22 | 13.64% |
| Others | 1.80 | 1.92 | -6.25% | 1.37 | 31.39% | 0.50 | 0.65 | -23.08% |
| Total | 5.36 | 6.03 | -11.11% | 4.25 | 26.12% | 1.83 | 1.85 | -1.08% |
Quantity in MnT,
Source: SteelMint Stats
Turkish scrap imports remained stable in Mar’18 despite high prices – Turkey has imported 1.83 MnT ferrous scrap in Mar’18 which remained nearly stable against 1.85 MnT imports noted in Feb’18. Turkey observed rise in scrap prices in the first half of Feb’18 which achieved short term peak to USD 376/MT,CFR in Mar’18 .The monthly average import price for USA HMS (80:20) moved up to USD 370/MT, CFR in Mar’18 as against USD 355/MT in Feb’18.
Major scrap exporters like USA and Belgium registered hike in the exports to Turkey in Mar’18 by 22% and 14% respectively while Russian scrap exports to Turkey have surged 79% M-o-M in Mar’18.
United States and United Kingdom both supplied highest 0.33 MnT ferrous scrap each occupying 18% share in total scrap imports in Mar’18 to Turkey. Russia witnessed sharp growth in exports to Turkey supplying 0.25 MnT ferrous scrap against 0.14 MnT in Feb’18. Followed by other prominent exporters like Belgium (0.25 MnT, +14% M-o-M), Netherland (0.17 MnT, -35% M-o-M) and Lithuania (0.14 MnT, +367% M-o-M) respectively.
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