Turkiye: Ferrous scrap imports down 8% m-o-m in Nov'22 on decline in shipments from USA

Turkiye's ferrous scrap imports decreased by 8% to 1.33 million tonnes (mnt) in November 2022 as compared to 1.44 mnt in October, as per customs data. Import volumes fell due to a decline in exports by major suppliers like USA which had increased its exports to other active markets like India.

Meanwhile, Turkiye has struggled to sustain production due to an increased electricity tariff in September. Many steel mills were forced to cut production. Additionally, demand from domestic and overseas end users remained low.

The import volume exhibited a mixed trend since June as Turkish mills started procuring from different origins whenever they found reasonable prices other than regular sourcing origins like the USA, and the UK.

Similarly, on a y-o-y basis, scrap imports decreased significantly by 35% as against 2.04 mnt in November 2021. A total of 19.39 mnt was imported by Turkiye from January to November in 2022, lower by 11% over the corresponding period last year (CPLY).

Country-wise shipments-

• Netherlands top exporter: The Netherlands emerged as the top scrap exporter to Turkiye in November at 291,974 t, a whopping 82% rise compared to the previous month. Reasonable import prices from the Netherlands and lesser shipment days than other origins attracted Turkish buyers' interest.
  
  
• Imports from USA down: Turkiye's imports from USA dropped by nearly 50% 141,979 t in November, pushing USA down to the second position in the top exporters' list. Since last two months, Turkiye's import volumes from USA have been declining.
  
  
• Shipments from Belgium, Romania decline: Belgium exported 76,638 t to Turkiye in November, lower by 59% as compared to 186,588 t in October. Shipments from Romania fell by 40% m-o-m to 62,341 t in the month under review.
  
  

Other updates-

• Crude steel output declines y-o-y in Nov'22: Turkiye's crude steel production was recorded at 2.4 mnt in November, down 30.7% compared to CPLY, as per World Steel Association (WSA) data.
  
  
• Lira stable against USD: The value of Turkish lira dropped to 18.61 in October which was 18.51 in September.
  
  

Outlook

After remaining less active in October and September, Turkish mills have actively secured bulk cargoes in November (which will arrive in December). Hence, it is expected that there will be a rise in imports in the last month of the year. After the winter holidays, mills are likely to procure material actively.