Turkey-world’s largest scrap importer witnessed fall in its ferrous scrap imports in January as against imports recorded in Dec’17. As per recent customs data, Turkey imported 1.68 MnT ferrous scrap in Jan’18 witnessing a fall of 17% M-o-M as against 2.02 MnT ferrous scrap imports in Dec’17.
Monthly average imported scrap price increased sharply in Jan’18 – Turkey witnessed a sharp hike in imported scrap prices in Dec’17 and Jan’18 months amid tightened supply during winters and strong global demand. The monthly average import price moved up to USD 352/MT, CFR in Dec’17 as against USD 311/MT in Nov’17. Prices increased further to USD 364/MT, CFR in Jan’18.
Fall in scrap imports in Jan’18 could be attributed to high scrap prices and reduced supply from major suppliers like UK, USA and Netherland to Turkey.
Rise in Turkey billet imports in Jan’18 – In Jan’18, billet imports to Turkey increased 7% M-o-M to 0.47 MnT. Higher billet import volumes could have been another reason behind fall in scrap import volumes.
United States remained largest source of ferrous scrap to Turkey –
In Jan’18, United States exported 0.39 MnT ferrous scrap registering 20% M-o-M fall against 0.49 MnT exports in Dec’17 to Turkey. Followed by other prominent exporters like Russia (0.21 MnT, +11% M-o-M), United Kingdom (0.20 MnT, -52% M-o-M), Canada (0.16 MnT, +100% M-o-M), Netherland (0.13 MnT,-50% M-o-M) and Belgium (0.10 MnT, +67% M-o-M) respectively.
In 2017, United States supplied highest (3.82 MnT, +17% Y-o-Y) occupying 18% share in total ferrous scrap imports in Turkey. United Kingdom supplied 3.18 MnT ferrous scrap and remained the second highest exporter to turkey, following which other major exporters were Netherland (2.71 MnT), Russia (2.35 MnT) and Belgium (2 MnT) respectively.
Country-wise ferrous scrap imports to Turkey –
| Country | Jan’18 | Dec’17 | M-o-M % Change | Jan’17 | Y-o-Y % Change | 2017 | 2016 | Y-o-Y % Change |
| United States | 0.39 | 0.49 | -20.41% | 0.30 | 30.00% | 3.82 | 3.26 | 17.18% |
| United Kingdom | 0.20 | 0.42 | -52.38% | 0.17 | 17.65% | 3.18 | 2.61 | 21.84% |
| Netherland | 0.13 | 0.26 | -50.00% | 0.22 | -40.91% | 2.71 | 2.53 | 7.11% |
| Russia | 0.21 | 0.19 | 10.53% | 0.18 | 16.67% | 2.35 | 2.40 | -2.08% |
| Belgium | 0.10 | 0.06 | 66.67% | 0.20 | -50.00% | 2.00 | 2.01 | -0.50% |
| Others | 0.65 | 0.60 | 8.33% | 0.45 | 44.44% | 6.88 | 4.88 | 40.98% |
| Total | 1.68 | 2.02 | -16.83% | 1.52 | 10.53% | 20.94 | 17.69 | 18.37% |
Quantity in MnT,
Source: SteelMint Stats
In 2017, ferrous scrap imports to Turkey crossed 20 MnT mark first time in the last five years. Turkey imported 20.94 MnT ferrous scrap while 4.64 MnT billets in 2017. Over widening price margin between scrap and billet imports, Turkey’s scrap imports increased 18% while billet imports fell 24% in 2017.
Turkey scrap imports rise 11% Y-o-Y with increased EAF steel output in Jan’18 – On yearly premises, Turkey witnessed 11% growth in its ferrous scrap imports in Jan’18 as against 1.52 MnT ferrous scrap in Jan’17.
According to the data released by World Steel Association, crude steel production in Turkey stood at 3.17 MnT during Jan’18 compared to 2.95 MnT in Jan’17, which is up by 7% Y-o-Y. Increased scrap consumption by Turkey-based EAF firms has resulted in increased crude steel production. Turkey steel production using EAF increased 11.5% Y-o-Y in Jan’18.
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