TURKEY Market Spotlight. Metal Bulletin s 5th World Lead Conference

Transcription

1 TURKEY Market Spotlight 1

2 Vehicle Market in Turkey Today, Turkey has become one of the bases for international automotive companies. 70% of the vehicles produced here, are exported with batteries produced in Turkey. Approximately 40% of the local demand for vehicles is met with imported cars. 2

3 Number of Vehicles in Turkey According to Vehicle Type by the End of 2011 Vehicle Type Automobile Mini Bus Bus Truck Quantity Small Truck Motorcycle Specialty Tractor Quantity TOTAL TOTAL (excluding motorbikes) Source: TURKSTAT Road Motor Vehicle Statistics Nb. As a known fact, some vehicles use double batteries. 3

4 Number of Vehicles in Turkey According to Vehicle Type by the End of 2011 The ratio in Turkey is, one vehicle to 5 people. Considering that this ratio is 1 vehicle to 2 people in many European countries, a growth of market share for batteries in Turkey can be foreseen. 4

5 Battery Market in Turkey There are around 13.5 million vehicles in Turkey, according to the statistics. 50% of these, are 10 or above years of age. 34% of this 50%, are over 16 years of age. 4 million batteries per year, are sold in the aftermarket. Around 3 million batteries are exported. According to EUROBAT data, Turkey, with its 5% share of battery aftermarket, holds 7 th place in Europe. 5

6 Battery Manufacturers in TURKEY There are numerous battery producers in Turkey, many of which are small-scale producers. There are only a few medium-scale producers. Mutlu is one of the three major battery manufacturers, with state of the art production equipment. 6

7 Mutlu Battery Factory Mutlu Battery is the first owner of a battery factory in Turkey, which started production in As there was no vehicle production in Turkey until 1966, Mutlu produced batteries for second-hand cars. Today, Mutlu with its production capacity of SLI battery per year, is the leading battery producer for OEM, export & aftermarket. It also has started to produce improved flooded and AGM batteries for S&S applications. 7

8 In addition to batteries for vehicles, stationary plant, industrial lead-acid batteries for special uses, are also produced in Turkey. Although there is no definite data on the capacity of use in these fields, the total of lead-acid batteries used are estimated to be around 25%. Use of VRLA type batteries among special batteries, are on the increase. 8

9 In the meantime, renewable energy systems such as solar and wind power, are foreseen as fields to radically increase demands in near future. 9

10 Lead Mines in Turkey & Their Re-Use According to technical data, Turkey holds 0.6% of the global lead reserves. 10 cities located in different regions are depicted to have lead reserves. First lead mining in Turkey is estimated to have started before Christ. 10

11 Lead Mines in Turkey & Their Re-Use However, lead reserves in Turkey are not prosperous enough for mining. Today, production volumes are low, due to the qualities of the mine & the difficulties in processing. Hence, pure lead needs are met mostly by LME imported lead. 11

12 Secondary Lead Production in the World Region Europe 1,224,691 1,316,596 1,398,505 Africa 80,566 79,008 84,996 America 1,586,422 1,648,040 1,721,362 Asia 2,118,763 2,276,35 2,421,113 Oceania 43,034 49,000 48,003 World Total (tonnes) 5,053,476 5,369,279 5,674,039 Source: EUROBAT 12

13 Secondary Lead Production in TURKEY tons of lead per year, in about 15 plants are recycled in Turkey. This corresponds to 6.4% of secondary lead production in Europe. Europe TURKEY 1,398,505 tons 90,000 tons (6.4% of Europe) 13

14 Secondary Lead Production in TURKEY In 2012, 25% of recycled lead production in Turkey took place at the recycling plants of Mutlu Akü, that have been operating since 1970 in Kartal and Gediz, located in Kütahya. Source: AKÜDER 14

15 Environmental Regulations in Turkey EU environmental regulations for lead and its compounds have been accepted, and are applied in TURKEY. 15

16 Environmental Regulations in Turkey - According to legal regulations in Turkey, 90% of batteries sold to aftermarket have to be re-collected for recycling. - Re-collection is not obligatory to be done by the selling company. It is acceptable to collaborate with a 3rd party, for the recollection. 16

17 Environmental Regulations in Turkey If the re-collected batteries for recycling fall short of 90%, then legal punishments according to environmental regulations, are in order. 17

18 Scrap Lead Import Ban - Until recently, regulations in TURKEY banned importing of scrap lead. - This ban was working against fair competition conditions for local producers of lead-acid batteries. 18

19 Scrap Lead Import - The regulation for scrap lead import has recently been changed. - It is now allowed, if certain conditions are met. 19

20 Scrap Lead Import Conditions - Firstly, the importing company needs to acquire a certificate of conformity from the Ministry of Environment. - Secondly, 1% of the cost of scrap lead to be imported, is to be paid to the environmental fund. -Last but not least, it is mandatory for the imported scrap batteries to have lower than 3% humudity level. -Which means absolutely dry batteries with no electrolyte at all, and actually it is damn difficult to achieve these conditions. 20

21 Aküder For further information on recycling batteries and legal regulations, please visit the website of Aküder (Community of Battery Recycling). 21

22 Recycling Capacity Due to battery exports and batteries exported on board OEM vehicles, the ratio of recycled batteries in relation to the recycling capacity of these plants is low. 22

23 Scrap Lead Cost - As the the higher portion of batteries that are produced in Turkey are exported, scrap lead prices increase irrationally and the price gap is compensated by imported lead. - As a consequence, the price difference between mined and recycled lead is reduced. 23

24 Scrap Lead Cost On the other hand, recycling costs of scrap batteries with alloy that hugely vary from each other, such as silver & bismuth, remain very high. Import Mining BATTERY PRODUCTION Export + AfterMarket + OEM Recycled Lead 24

25 State & Cost of Lead in Turkey Lead from mining (very little) Import Lead LME + Premium & taxes Generally Pure Lead Lead Recycling Plants Lead Use Scrap Lead (high cost) Due to battery & vehicle export, scrap lead is insufficient. Imported Scrap Lead (banned) 25

26 Conclusion Due to the close bond between the Turkish consumer demand and vehicle production, the international market and international companies, lead acid battery and lead demand will increase. To sum up, Turkey is considered as a prospect emerging market in terms of lead acid batteries and the recycled lead industry. 26

27 Thank you 27