Turkiye: Ferrous scrap imports largely stable y-o-y in H1CY22
Turkiye, world’s largest ferrous scrap importer, registered a marginal fall of 1% in import volumes in H1CY22 (January-June 2022) to 12.27 million tonnes (mnt) ...
Turkiye, world's largest ferrous scrap importer, registered a marginal fall of 1% in import volumes in H1CY22 (January-June 2022) to 12.27 million tonnes (mnt) from 12.44 mnt in H1CY21, as per customs data maintained with SteelMint.
Ferrous scrap imports saw a downfall in the first few months of H1 due to currency depreciation, and suspension of operations at mills. Later, the market gained momentum as buyers were actively restocking inventories due to increasing steel demand.
Ferrous scrap imports saw a decline during May-June as demand unexpectedly remained subdued after the Eid holidays. The high freight rates limited imports from the major exporting countries.
Also, the country's billet imports in Q2CY22 increased sharply as its (billets) prices were almost at par with those of imported scrap.
In June, Turkiye's ferrous scrap imports dropped 28% m-o-m to 1.59 mnt against 2.22 mnt in May 2022.
Load country-wise breakup-
- Imports from USA increase: In H1CY22, Turkiye imported 2.2 mnt of scrap from USA, the leading scrap supplier to the country, a drop of 29% as against 1.7 mnt in H1CY21. Imports from USA grew as buyers found the prices workable.
- Imports from UK slide: Imports from the UK were at 1.1 mnt in H1 this year, a 21% fall against 1.4 mnt in the same period last year.
- Imports from Netherlands drop: Imports from the Netherlands dipped by 37% to 1.08 mnt in H1 against 1.7 mnt in the year-ago period.
Turkiye's crude steel production stood at 19 mnt in the first half of 2022, decreasing by 4.6% compared to the corresponding period last year, as per the World Steel Association (WSA).
Outlook
Steel mills will likely place lower bids for the imported material and push for higher discounts due to less support from the downstream sector. Additionally, a sharp hike in power tariffs is another important factor that may push back buyers.
