Turkey, the world’s leading buyer of seaborne ferrous scrap, recorded 2.42 million tonnes (mn t) of imports of the material in Apr’21, 12% higher against 2.17 mn t a month ago, as per SteelMint data. Increasing demand from Turkey’s manufacturing sector kept the imports on an upswing.
Imported scrap volumes to Turkey in the month under review climbed sharply by 41% on a year-on-year (y-o-y) basis vis-a-vis 1.72 mn t in Apr’20. Furthermore, Turkey produced 3.3 mn t of crude steel, up 46.6% y-o-y and a slight decline of 3% from 3.4 mn t noticed month-on-month (m-o-m) respectively, as per figures released by the World Steel Association (WSA).
Turkey market at a glance
Imports from the US rise: The U.S. became the largest exporter of ferrous scrap to Turkey at 0.55 mn t in Apr’21. Turkey’s scrap imports from the U.S. hit a nine-month high in Apr’21. Meanwhile, exports were up over twofold on a monthly basis from 0.22 mn t.
Turkey’s scrap imports from Netherlands remained unchanged at 0.34 mn t in Apr’21. The UK exported 0.25 mn t, as per SteelMint data.
SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $440/t CFR in Mar’21 vis-a-vis $418/t CFR basis in Feb’21. Prices mentioned are monthly averages.
Volatility in exchange rates: The Turkish Lira depreciated to $8.29 levels towards end Apr’21, against $8.08 levels seen in mid-Apr owing to US-Turkey trade pressure.
Sustained long steel demand pushed Turkish mills to continue with imported billet purchases. The country imported almost 0.1 mn t in Apr’21, registering a double hike y-o-y, in contrast with 0.05 mn t in Apr’20.
Automotive sale skyrocket in Apr’21: Sales of passenger cars and light commercial vehicles in Turkey jumped 132% y-o-y in Apr’21. Around 61,488 units were sold throughout the month, reported the Automotive Distributors Association (ODD), just before the country entered the full nationwide Covid-19 lockdown that is expected to impact its May sales.
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