Turkey: Ferrous Scrap Imports Marginally Down in 2018
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Turkey-world's largest scrap importer has observed a marginal drop in scrap imports by 2% Y-o-Y in 2018. As per recent customs data, the country imported 20,616,955 MT ferrous scrap in 2018 as against 20,935,694 MT during the last year.
Turkish currency lira hitting record low against USD, political instability and USA import tariffs have affected scrap imports as major issues in 2018 however, rising EAF steel production supported scrap imports despite high global scrap prices as compared to last year.
According to the data maintained with SteelMint, crude steel production in Turkey stood at 37.14 MnT in 2018, marginally down as against 37.33 MnT in the same period last year. Turkey's electric furnace steel production accounts of 70% share of total crude steel production which remains supported in 2018.
Average global imported scrap prices up USD 40-45/MT in 2018 - The average import price for USA HMS (80:20) stood at USD 343-345/MT, CFR Turkey in 2018, up USD 40-45/MT against USD 300-302/MT, CFR in 2017.
A sharp rise in exports of finish flat (up 46% Y-o-Y) and finish long (up 18% Y-o-Y) could have aid steel mills to maintain their melting margins resulting in supported scrap imports despite Turkish Lira depreciated to a record low level of 6.8 against USD in Aug'18 which was around 3.5-4 levels in 2017.
Turkey ferrous scrap imports up 8% M-o-M in Dec'18 - The country imported 1,623,765 MT ferrous scrap in Dec'18, up 8% M-o-M as against 1,509,115 MT in Nov'18. On yearly premises, imports declined 20% Y-o-Y in Dec'18 as against 2,023,038 MT in Dec'17. Crude steel production fell 9% to 2.87 MnT on a monthly basis in Dec'18.
USA supplied 290,051 MT ferrous scrap in Dec'18 occupying highest 18% share in Turkey's total scrap imports. Russia observed a jump in scrap exports supplying 218,219 MT ferrous scrap, up 102% M-o-M as against 107,938 MT in Nov'18.
Followed by other prominent suppliers were Belgium (157,353 MT, +24% M-o-M), Netherland (133,333 MT, +36% M-o-M) and United Kingdom (129,796 MT, -17% M-o-M) while Canada observed nil export volume in Dec'18 to Turkey.
In Dec'18 billet imports recorded at 275,100 MT, down 12% M-o-M and pig iron imports at 90,396 MT, up 18% M-o-M.
Country-wise Turkey ferrous scrap imports -
| Country | 2018 | 2017 | % Change Y-o-Y | Dec'18 | Nov'18 | % Change M-o-M |
| United States | 3.70 | 3.82 | -3.14% | 0.29 | 0.24 | 20.83% |
| United Kingdom | 2.65 | 3.18 | -16.67% | 0.13 | 0.16 | -18.75% |
| Russia | 2.52 | 2.35 | 7.23% | 0.22 | 0.11 | 100.00% |
| Netherland | 2.32 | 2.71 | -14.39% | 0.13 | 0.21 | -38.10% |
| Belgium | 1.91 | 2.00 | -4.50% | 0.16 | 0.13 | 23.08% |
| Others | 7.52 | 6.88 | 9.30% | 0.69 | 0.66 | 4.55% |
| Total | 20.62 | 20.94 | -1.53% | 1.62 | 1.51 | 7.28% |
Quantity in MnT,
Source: SteelMint Stats
