Turkey: Steel billets imports up 14%, y-o-y, in CY'21 on active demand

Turkey witnessed a significant 14% y-o-y rise in billets imports in CY'21. The volumes stood at 4.36 million tonnes (mnt) in the period under review as against 3.82 mnt in CY'20, as per customs data maintained by SteelMint.

Meanwhile, billets imports rose sharply by 46% m-o-m in Dec'21 to 0.38 mn t compared to 0.26 mn t in Nov'21.

Russia leading exporter

Russia continued to be the leading exporter of steel billets to Turkey at 2.43 mnt in CY'21, witnessing a considerable increase of 24% y-o-y as against 1.96 mn t in CY'20.

Ukraine acquired the second position among the top exporters' list with 0.88 mnt in CY'21 followed by Algeria with 0.43 mnt. However, Turkey's billets imports from Ukraine fell significantly by 27% in CY'21.

Price trends

The yearly average of SteelMint's assessment of Turkey billets import (120*120mm, 3SP) prices increased to $633/t CFR in CY'21 from $410/t CFR levels in CY'20.

Why did imports rise in CY'21?

Turkey-based steel mills had raised imports sharply towards the beginning of 2021. Billets imports in Feb'21 were recorded in the levels of 0.52 mnt and in Mar'21 were at 0.55 mnt. Strong steel demand and price-disparity between imported and domestic billets supported imports.

However, the volumes fell in the latter months, as in Jun'21, it stood at 0.32 mnt as Covid-19 outbreak occurred in Mar-Apr, before rebounding to 0.38 mnt in Dec'21.

Increased natural gas and electricity costs in Turkey in the past four months have lifted conversion costs for steelmakers.