Turkiye: Ferrous scrap imports fall nearly 15%, m-o-m, on bearish steel market trends

Turkiye's ferrous scrap imports declined by 14% to 1.37 million tonnes (mnt) in July 2022 compared to 1.59 mnt last month, as per customs data.

The absence of buyers in the market due to weak finished and semi-finished steel demand kept imported scrap offers under pressure. A few mills postponed fresh bookings, trying to secure further discounts.

Additionally, a sharp hike in power tariffs is another key factor that may drive buyers away from the market.

Similarly, on yearly basis, scrap imports decreased by 41% compared to 2.34 mnt in July 2021.

Country-wise shipments

• USA largest exporter: The US was the largest supplier to Turkiye with 379,343 t in July. Exports went up by 6% m-o-m as buyers booked slightly more due to reasonable prices.
  
  
• UK exports down: The United Kingdom was the second largest exporter at 157,632 t despite a decline of 43% m-o-m decline in volumes compared to 277,207 t in the previous month.
  
  
• Shipments from Netherlands down: The Netherlands was the third-largest exporter at 110,093 t, although volumes dropped by 30% compared to 157,102 t last month.
  
  

Why imports fell?

• Crude steel output down: Turkiye's crude steel production was 2.7 mnt in July, down 20.7% compared to the corresponding period last year, as per (WSA) World Steel Association.
  
  
• Lira down against USD: The Turkish lira fell further against the dollar. One USD was 14.84 TRY in May which fell to TRY 16.63 in June.
  
  

Outlook
The input costs of Turkish steel mills are anticipated to increase further after the country's Energy Market Regulatory Authority raised electricity prices for industrial use. This may result in Turkish steel mills opting for production cuts or raising prices despite the sluggish market conditions as margins are quite low.