Turkiye: Ferrous scrap imports rise 5% m-o-m in November amid further re-stocking

In November, Turkiye experienced a 5% surge in ferrous scrap imports, reaching 1.56 million tonnes (mnt), as revealed by customs data from SteelMint. This marked an increase from the previous month's 1.49 mnt. On an annual basis, there was a notable uptick of 17% compared to the same month in the previous year, where imports stood at 1.33 mnt.

The increase in scrap imports during November was driven by heightened re-stocking demand in anticipation of the holidays in December. Records for November indicate that Turkish mills booked approximately 35-38 vessels, primarily from Europe and the United States.

However, for the first eleven months of 2023, Turkey witnessed a 12% decline in scrap imports, totaling 17.11 mnt, in contrast to the 19.39 mnt reported during the corresponding period in the previous year.

Billet imports: Turkiye's steel billet imports rose by 58% m-o-m in November to 501,034 t from 317,053 t in October. Russia was the major exporter with 211,486 t followed by Algeria with 76,080 t. Meanwhile, import volumes increased by 24% to 5.40 mnt y-o-y in January-November as against 4.36 mnt in the year-ago period.

Rebar exports: Turkiye's rebar exports remained largely stable m-o-m at 390,678 t from 389,993 t in October. Israel was the top importer at 872,835 t followed by Yemen at 657,504 t during the period. However, export volumes fell by 42% to 3.72 mnt y-o-y in January-November as against 6.41 mnt in the year-ago period.

Country-wise shipments

Imports from the US rise over 20% m-o-m: Scrap imports from the United States to Turkiye reached a total of 0.46 mnt in November, marking a notable increase of 21% compared to the 0.38 mnt reported the previous month. Moreover, on an annual basis, the imports showed a substantial surge when compared to the 0.14 mnt recorded in November 2022.

Imports from the Netherlands drops by 40% m-o-m: Turkish mills imported approximately 0.15 mnt of scrap from the Netherlands in November, reflecting a decrease of 40% compared to the 0.25 mnt recorded in the previous month. It is noteworthy that no imports from the Netherlands were observed in the same month of the preceding year.

Imports from Romania flat m-o-m: In November, scrap imports from Romania into Turkiye remained stable at 0.09 mnt, unchanged from the previous month. Nevertheless, on a y-o-y basis, there was a notable increase of 13%, compared to the 0.08 mnt reported in November 2022.

Key updates

Crude steel production stable m-o-m: Turkiye's crude steel production was recorded at 3 mnt in November, stable against the previous month, as per World Steel Association (WSA) data.

Lira: The value of the Turkish lira dropped to 28.88 in November from 28.30 in October.

Outlook

Turkey's ferrous scrap import volumes are expected to remain low in December, as substantial bookings were already made in November for shipments scheduled in January. Additionally, with the Christmas and New Year holidays approaching, market participants are likely to adopt a quieter stance during the second half of December.