How Turkey leads global scrap metals industry

TURKEY July 09 2014 10:02 AM ISTANBUL (Scrap Register): Which country is importing the largest chunk of scrap metals in the world? It is not China which is one of the largest consumers of all kinds of metals in the world. It is Turkey is eating up bulk of scrap metals in the world. Yes, Turkey is the global ‘scrap metal yard.'

Figures released by the Turkish Steel Exporters' Association say that Turkey imported mind-boggling scrap metals to the tune of $9.4 billion in the year 2012. Or to be more specific, the global share of Turkey's import of scrap metals was 21 per cent of 108 million tons.

Why is it that Turkey is the world's largest scrap metal leader?

According to Steel Exporters' Association chief Namik Ekinci, the bulk of scrap metals imported by Turkey is steel scrap as the country's steel industry supplies raw materials for the railway, machine and automotive industries.

The large volume of scrap imports by Turkey is thanks to the acute shortage of varieties of steel in the domestic market.

In 2012, Turkey imported steel scrap to the tune of $700 million which in course re-generated $900 million worth of automotive and household appliance exports.

Ekinci feels that if Turkey imports semi-manufactured products instead of scrap, the foreign trade deficit would increase by $5.3 billion and employment would decline by 57 percent.

So, importing scrap metals is the key to the economic development and trade balance for Turkey.

Here are some fascinating details of the Association's report on the global scrap metal imports and exports:

**After Turkey, South Korea is the second largest scrap metal importer in the world. South Korea's scrap metal import was to the tune of 9 percent of the total global volumes.

**India is the third largest scrap metal importer with 8 percent of scrap flowing into the country.

**Now, look at the largest exporters of scrap metals to countries like Turkey. Developed countries like the US, Germany, Britain, Russia etc are sending the biggest volumes of their recycled scrap metals to Turkey. So, the US share of scrap metal experts to Turkey was a massive 30 percent. Britain sent 32 percent, Russia 47 percent, the Netherlands 30 percent, Belgium 37 percent and Germany 7 percent of all their scrap metal exports to Turkey.

If the report is to be believed, the insatiable demand for scrap metals by Turkey will continue to increase. It says that scrap imports will increase from the current 32 million tons to 60 million by 2023.

What is the export revenue that Turkey has generated out of the scrap metal imports? The export revenue from the $9.4 billion scrap imports in 2012 was $6.5 billion.