Turkey's ferrous scrap import soars by 14% y-o-y in Jan'21

Turkey- the world's largest ferrous scrap importer, observed an yearly increase of 14% in its scrap import volumes. Turkey imported 1.93 mn t scrap in Jan'21, as per data recorded with SteelMint. Robust steel market fundamentals supported by overseas finished steel sales, supported strong demand for raw materials.

However, imports have fallen by 13% compared to Dec'20 due to comparatively less trades owing to New year holidays.

• UK and Russia became major scrap suppliers in Jan'21 - UK remained the largest supplier to Turkey at 0.38 mn t in Jan'21 around fourfold higher than the CPLY. Shipments from Russia also rose sharply by 75% y-o-y to 0.21 mn t. UK and Russia both increase in tonnages and headed the list of sellers.
  
  

Other suppliers such as Netherland and USA both declined in the starting of 2021 as against Jan'20. SteelMint's assessment of USA origin HMS 1&2 (80:20) stood at $435/t CFR Turkey in Dec'20 against $325/t CFR Turkey in Nov'20.

• Tighter scrap supplies - Very tight supply chains in general and the continued path towards the reopening of economies are driving inflationary pressure on everything from commodities to freights. Winter conditions in Europe and the US in February were logistically troubling and resulted in limited scrap availability, states IREPAS.
  
  
• Bullish steel market sentiments - There is strong rise seen in Turkey's crude steel output and jumped on 12.7% y-o-y and stood 3.4 mn t in Jan'21, as per World Steel Association. It is the result of price rally and demand in 2020. There were too many scrap contracts at high prices, Turkey mills bought batches from two to three months in advance because of their sales.
  
  

Chinese demand for raw materials and semi-finished products has been providing the main boost to the markets. Along with the continuing high demand in most domestic markets and especially in emerging economies, international availability is still tight. China is starting to reduce steel output to fulfil environmental targets. BOF plants will reduce capacity utilization, while EAF plants will take over this share of production, states recent press release of IREPAS. This is likely to exert an upward pressure on prices.