Turkey-world’s largest scrap importer has witnessed 16% rise in its ferrous scrap imports in H1 2018 on Y-o-Y basis as against imports recorded in H1 2017. As per recent customs data, Turkey imported 10.75 MnT ferrous scrap in H1’18 as against 9.30 MnT ferrous scrap imports during H1 2017.
On quarterly premises, Turkey’s scrap imports climbed up by 7% Y-o-Y to 5.38 MnT in Q2’2018 as against 5.05 MnT in Q2’2017 while remained almost stable on Q-o-Q basis as against 5.36 MnT in Q1’2018. On the other hand, Turkey imported 1.70 MnT billets during Q2 2018 which increased 59% Y-o-Y as against 1.07 MnT billet imports in Q2 2017.
Considerable rise in scrap imports during H1 could be a result of high usage of scrap in EAF steel outputs in Turkey. However, imported scrap prices remained high and billet imports increased this year in Turkey.
According to SteelMint’s average price index for USA origin HMS 1&2(80:20) scrap, average imported scrap price fall slightly by USD 10/MT to USD 350/MT in Q2 2018 as against 360/MT, CFR Turkey in Q1 2018. Less economic and political stability along with dull finish steel demand affected scrap imports in Q2 2018 in Turkey.
According to the data released by World Steel Association, crude steel production in Turkey stood at 18.89 MnT during H1’18 which is marginally up by 4% Y-o-Y compared to 18.21 MnT during H1 2017, while up 2% Q-o-Q to 9.56 MnT in Q2’18 as against 9.32 MnT during Q1’18 with increasing EAF outputs.
United States remained largest scrap exporter to Turkey – In H1’18, United States supplied highest (1.98 MnT, +31% Y-o-Y) occupying 18% share in total ferrous scrap imports in Turkey. United Kingdom supplied 1.51 MnT, up 20% Y-o-Y ferrous scrap in H1 standing as the second highest exporter to turkey, followed by other major exporters like Russia (1.34 MnT, +62% Y-o-Y), Netherland (1.20 MnT, -6% Y-o-Y) and Belgium (1.12 MnT, -7% Y-o-Y).
Country-wise ferrous scrap imports to Turkey –
| Country | H1 2018 | H1 2017 | % Change Y-o-Y | Jun’18 | May’18 | % Change M-o-M | Q2 2018 | Q1 2018 |
| United States | 1.98 | 1.51 | 31.13% | 0.30 | 0.23 | 30.43% | 0.99 | 0.99 |
| United Kingdom | 1.51 | 1.26 | 19.84% | 0.22 | 0.18 | 22.22% | 0.67 | 0.84 |
| Russia | 1.34 | 0.83 | 61.45% | 0.30 | 0.23 | 30.43% | 0.72 | 0.6 |
| Netherland | 1.20 | 1.28 | -6.25% | 0.22 | 0.24 | -8.33% | 0.64 | 0.57 |
| Belgium | 1.12 | 1.21 | -7.44% | 0.15 | 0.13 | 15.38% | 0.54 | 0.56 |
| Others | 3.60 | 3.21 | 12.15% | 0.64 | 0.64 | 0.00% | 1.82 | 1.80 |
| Total | 10.75 | 9.30 | 15.59% | 1.83 | 1.65 | 10.91% | 5.38 | 5.36 |
Quantity in MnT,
Source: SteelMint Stats
Turkish scrap imports rise 11% in Jun’18 despite firm prices – Turkey has imported 1.83 MnT ferrous scrap in Jun’18 witnessing 11% M-o-M rise as against 1.65 MnT imports noted in May’18. Turkey observed fall in scrap prices in the first half of Jun’18 which turned up further at earlier levels in the second half. The monthly average import price for USA HMS (80:20) stood at USD 350/MT, CFR in Jun’18 as against USD 347/MT in May’18.
On yearly basis, imports increased sharply by 42% Y-o-Y in Jun’18 as against 1.29 MnT imports in Jun’17.
In Jun’18, Major scrap exporters like USA and Russia registered 30% M-o-M rise recording highest 30 MnT ferrous scrap exports to Turkey while UK scrap exports to Turkey surged 20% M-o-M in Jun’18. United Kingdom and Netherlands both supplied 0.22 MnT ferrous scrap each occupying 12% share in jun’18. Followed by other prominent exporters like Belgium (0.15 MnT, +15% M-o-M) and Lithuania (0.13 MnT, +86% M-o-M) respectively.
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