Turkey: Scrap Imports Rise 18% Amid Falling Billet Imports in CY17

Ferrous scrap imports to Turkey in 2017 crossed 20 MnT mark first time in the last five years. Over widening price margin between scrap and billet imports, Turkey’s scrap imports increased 18% while billet imports fell 24% in 2017.

Turkey-world’s largest scrap importer has witnessed further improved figures of its ferrous scrap imports in 2017. As per recent customs data, Turkey imported 20.94 MnT ferrous scrap over a span of 2017, witnessing a growth 18% Y-o-Y against 17.69 MnT ferrous scrap imports in 2016.

Turkey imported 2.02 MnT ferrous scrap in Dec’17, up 8% M-o-M as against 1.87 MnT in Nov’17. On yearly premises, Turkey witnessed 22% growth in its ferrous scrap imports in Dec’17 as against 1.66 MnT ferrous scrap in Dec’16.

Turkey witnessed increased ferrous scrap imports by 6% Q-o-Q and 26% Y-o-Y in Q4-CY17. As against 5.69 MnT imports in Q3-CY17 and 4.79 MnT imports Q4-CY16, Turkeys’ ferrous scrap imports stood at 6.03 MnT in Q4-CY17.

During the first half of 2017, Turkey imported 9.30 MnT ferrous scrap which has grown by 26% to 11.62 MnT in H2-2017. While imports in H2-CY17 increased 36% Y-o-Y against 8.52 MnT imports in H2-2016.

Price gap between imported scrap and billet widened in CY17 – Hike in the scrap imports in Turkey could be attributed to the widening price gap between billet and scrap imports. The average annual price margin between scrap and billet imports was at around USD 100/MT, CFR in 2015 which gradually increased to USD 106/MT, CFR in 2016 and to USD 145/MT, CFR in 2017. This resulted in scrap imports to increase 9% in 2016 and 18% in 2017 while billet imports fell 22% in 2016 and 24% in 2017 respectively on yearly premises in Turkey.

Turkey scrap imports rise with increased EAF steel output – According to the data released by World Steel Association, crude steel production in Turkey stood at 37.52 MnT during 2017 compared to 33.16 MnT in 2016, which is up by 13% Y-o-Y. Increased scrap consumption by Turkey-based EAF firms has resulted in increased crude steel production.

United States remains preferred source for ferrous scrap to Turkey –

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 stood as the second highest exporter with 3.18 MnT (+22% Y-o-Y) ferrous scrap exports following which other major exporters were Netherland (2.71 MnT),  Russia (2.35 MnT) and Belgium (2 MnT).

In Dec’17, United States exported 0.49 MnT ferrous scrap followed by other prominent exporters like United Kingdom (0.42 MnT), Netherland (0.26 MnT), Russia (0.19 MnT) and Belgium (0.06 MnT). Ferrous scrap exports from US and UK to Turkey increased 29% and 40% M-o-M in Dec’17 as against respective exports in Nov’17.

Country-wise ferrous scrap imports to Turkey –

Quantity In MnT,
Source: SteelMint Stats