Turkiye: Ferrous scrap imports reach nearly 10 mnt in H1CY'24; marks 4% y-o-y rise

In the first half of the calendar year 2024 (H1CY'24), Turkish ferrous scrap imports slightly rose by 4% y-o-y to 9.98 million tonnes (mnt) from 9.63 mnt in the same period last year. However, on a m-o-m basis, imports stood at 1.33 mnt in June 2024, down by 27% compared to 1.81 mnt in May 2024. On the other hand, imports surged by 9% y-o-y as compared to 1.22 mnt in June 2023. The US continued as the top exporter, and the UK followed by Belgium.

The US emerged as Turkiye's largest ferrous scrap supplier in H1CY'24, delivering 2.12 mnt, and the Netherlands followed with 1.31 mnt, up by 20.5%. UK bookings rose significantly to 1.1 mnt, while imports from Belgium fell by 32% to 0.65 mnt.

Key updates

Crude steel production: In H1CY'24, Turkiye's crude steel production surged by 17% y-o-y to 18.6 mnt, up from 15.9 mnt in the same period last year, according to World Steel Association (WSA) data. This increase was driven by new capacities, including a major steel manufacturer Tosyali Holding's 4 mnt/year quantum electric arc furnace-based flat steel mill.

Lira exchange rate: The Turkish lira's value declined by 48% as one TRY was valued at 21.88 on average during H1CY'23 and now in H1CY'24 the value is 32.38.

Country-wise shipments

Imports from the US increase

Ferrous scrap imports from the US to Turkiye increased by 7% y-o-y in H1CY'24 at 2.12 mnt as compared to 1.98 mnt recorded in the corresponding period of last year (CPLY). In June 2024, imports stood at 0.35 mnt, down by 11% compared to 0.39 mnt in June 2023. However, on a y-o-y basis, imports surged by 44% compared to 0.24 mnt in June 2023.

Imports from UK up

In H1CY'24 ferrous scrap imports in Turkiye from the UK increased over 50% reaching 1.10 mnt as compared to 0.73 mnt in the same period last year. In June 2024, imports stood at 0.12 mnt, dropping by 50% as compared to 0.25 mnt in the previous month. Turkish ferrous scrap imports from the UK recorded a five-fold jump in June 2024 as compared to 0.2 mnt in June 2023.

Imports from the Netherlands

Ferrous scrap imports from the Netherlands increased by 20% y-o-y reaching 1.31 mnt as compared to 1.08 mnt in H1CY'23. In June 2024, imports stood at 0.08 mnt, down by 61% m-o-m compared to 0.22 mnt in May 2024. On a y-o-y basis, imports dropped by 37% as compared to 0.10 mnt in June 2023

Imports from Belgium drop

Ferrous scrap imports from Belgium dropped by 32% y-o-y reaching 0.96 mnt compared to 0.64 mnt in H1CY'23. In June 2024, imports stood at 0.09 mnt, up by 14% m-o-m compared to 0.07 mnt in May 2024. On a y-o-y basis, imports dropped by 37% as compared to 0.14 mnt in June 2023.

Outlook: According to BigMint's vessel line-up tracker, total scrap imports have increased since June 2024. However, weak steel demand and a preference for cheaper semi-finished products from China are expected to keep volumes moderate unless domestic steel demand improves.