According to KPMG's “Steel Sectoral Overview - 2022” report, Turkey is the 4th country in the world to use scrap after China, USA and European Union (EU) countries. According to the official data announced by the Ministry of Commerce, Turkey's scrap and waste imports reached 14 billion dollars in 2021 from approximately 543 million dollars in 2001. The rate of increase in imports was 26 times.
Raw material problem can put the industrialist in a dead end
Although China alone maintains the peak, it is among the countries whose imports are not high because it uses the scraps it produces. In addition to Turkey's use of scrap as raw material, most of the products are imported and reach our country. Steel producers in Turkey, which have recently imported scrap from the Benelux countries, are looking for more affordable scrap. Turkey's need for scrap and the fact that it currently imports the majority of scrap reveals that a raw material crisis may occur in the upcoming period.
Can a quota limit be set?
Scrap for use in Turkey's steel production; It imports from EU, USA, Japan, Russia and Baltic regions. Turkey's becoming an open market, the EU's closing of the US market and the quota implementation brings Turkey to the brink of a big problem. The EU's decision to impose a quota limit, which will also affect Turkey, may reveal the raw material problem in Turkey.
Increase in scrap prices could become unpredictable
In the upcoming period, the demands of scrap exporting countries to keep their raw materials in their own markets with the goal of zero carbon policy, discussions about quota limitation for scrap and the increase in scrap prices become unpredictable. In order to avoid raw material problems in the future, researching new markets and how to increase the diversity of raw material sources are a matter of discussion.
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