Turkiye: Ferrous scrap imports hit 10-month high in Mar'23

Turkiye's ferrous scrap imports surged 90% to 2.34 million tonnes (mnt) in March 2023 compared to 1.23 mnt in February. This is the highest import volume recorded in a month in the last 10 months, as per customs data maintained with SteelMint.

Post-earthquake, construction activities triggered scrap import volumes in March due to the majority of secondary steel producers (electric arc furnace mills) requiring more scrap to meet the increased finished steel demand.

Additionally, steel producers aggressively booked fresh stocks before Ramadan, as the holidays usually slow down market activities.

Imports surged as supplies from European countries like the UK, Belgium, Netherlands, and Germany increased. Europe remained the main source of feedstock for Turkiye.

Similarly, imports increased by 16% y-o-y compared to 2.02 mnt in March 2022

The country's steelmakers produced 2.7 mnt of steel in March. Steel producers increased production by 29% compared to February, as per World Steel Association data, but production decreased by 18.6% y-o-y compared to March 2022.

Due to increased domestic demand, Turkiye's rebar exports fell by 7% m-o-m to 240,112 t in March compared to 257,715 t in February, according to data released by Customs. Meanwhile, Turkiye's steel billet imports surged 56% m-o-m to 632,430 t in March as against 406,279 t in February, according to Customs data. Russia was the largest exporter with 300,736 t.

Lira depreciates m-o-m: The Turkish lira depreciated by around 2% to 19.18 in March from 18.88 in February against the USD.

Country-wise shipments

• US highest supplier: The US remained the top scrap supplier to Turkiye in March at 0.43 mnt, up 54% m-o-m. The demand for US bulk ferrous scrap increased due to readily available shipments at comparatively lower prices from other origins.
  
  
• Shipments from UK and Belgium surge m-o-m: Belgium exported 0.29 mnt to Turkiye in March, up by 383% compared to 0.06 mnt in February. Shipments from the UK skyrocketed by 520% m-o-m to 0.31 mnt in March against 0.05 mnt in February.