Turkey, the world’s largest ferrous scrap importer witnessed an increase in scrap imports by 53% m-o-m in Jul ’20. Imports stood at 2.35 mn t during Jul ’20 as against 1.53 mn t in Jun ’20 as per SteelMint customs data. Improved finished steel export bookings by Turkish mills have given support to the scrap prices. Turkish mills scrap bookings from their global suppliers hit historically high in July and also imports figures was the highest on monthly level was seen in the last five years.
Similarly, on a yearly premise, scrap imports rose 28% y-o-y from 1.83 mn t during the same month in the previous year.
Reasons behind increase in imported scrap bookings-
- Increased in renewed demand with active inquiries in the market due to recovery in finished steel market sentiments
- Scrap buying during June exceeds normal levels amid replenishing of stocks
- Global long steel market is indeed due to reduction in demand and supply around the world some mills have operated on more than 60 percent capacity utilization rate.
- Scrap inventories were depleted in May as industry closures meant low scrap availability. Since scrap needed to be restocked, mills remained active in booking bulk cargoes in Jun ’20, as per IREPAS
Imports from USA jumped sharply by 95% m-o-m – USA, one of the leading ferrous scrap suppliers occupied 24% of share in total scrap imported to Turkey in Jul ’20, the country exported 0.57 mn t in Jul ’20, sharply up 95% as against 0.29 mn t in Jun ’20.
Outlook – Considering imported scrap bookings made for Aug ’20 shipments, Turkish ferrous scrap import volumes in Aug ’20 are likely to remain on the higher side.
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