Veysel Yayan: China’s scrap imports will not rise suddenly, its scrap needs will be met by local supply

Tuesday, 16 March 2021 17:54:45 (GMT+3)   |   Istanbul

At the International Steel Scrap 2021 conference held virtually on March 10, Veysel Yayan, secretary general of the Turkish Iron and Steel Producers’ Association (TCUD), commented on the current situation in the steel scrap market.

Regarding official support in Turkey given to the scrap market, Veysel Yayan stated that the support given to the scrap industry is limited, adding that the stimulus for scrapping vehicles only every five years to support the automotive industry is insufficient. Stating that the infrastructure industry should be supported, the TCUD secretary general said that these supports will also be beneficial within the scope of Green Deal measures.

Mr. Yayan said he did not think that China will export scrap, going on to state that Chinese buyers will prefer to purchase scrap only because the Chinese government will not allow raw material exports. Stating that production via EAFs in China has increased to a share of 15 percent and is expected to increase to 20 percent within five years, Mr. Yayan noted that this will be supported by the usage of domestic scrap given the cost of imported scrap. He said that no scrap shortage is expected in the market due to China’s scrap imports, and that Turkey’s position in the market is expected to remain the same in the short term. As a result, Yayan stated that he did not think that China would increase its scrap imports suddenly. He said he believed that EAF-based steel production capacity would develop in parallel with the increase in domestic scrap supply.

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