Turkiye: Ferrous scrap imports surge 20% m-o-m in Jul'24 amid rise in scrap flow from Europe

In July 2024, Turkish ferrous scrap imports increased by 20% m-o-m to 1.6 million tonnes (mnt) from 1.33 mnt in June, according to customs data compiled by BigMint. The US continued to be the top exporter, followed by the UK, the Netherlands, and Belgium. Notably, a substantial increase was observed in Turkiye's ferrous scrap imports from Europe.

However, scrap imports fell by 15% y-o-y compared to 1.89 mnt recorded during the same period last year.

In the first seven months of the year, imports increased slightly by 1% y-o-y, rising from 11.52 mnt in January-July 2023 to 11.58 mnt in January-July 2024.

Key updates

• Crude steel production: Turkiye's crude steel production remained stable m-o-m at 3.06 mnt in July, according to World Steel Association (WSA) data.
  
  
• Lira exchange rate: The Turkish lira's value remained range-bound, as one TRY was valued at 30.4 against 1 US dollar in July, compared to 30.7 in June.
  
  
• As per BigMint's bulk scrap trade tracker, Turkish buyers booked around 23-25 deep-sea bulk cargoes and 9-10 short-sea bulk cargoes for July shipment and arrival.
  
  

Country-wise shipments

Imports from the UK surge: Ferrous scrap imports from the UK increased enormously by 92% m-o-m, from 0.13 mnt in June to 0.25 mnt in July 2024. Compared to July 2023's 0.15 mnt, import volumes significantly increased by 67% on a y-o-y basis.

In the first seven months of the year, imports increased significantly by 55% y-o-y, from 0.88 mnt in January-July 2023 to 1.36 mnt in January-July 2024.

• As per BigMint's vessel line-up data for bulk scrap, the import volume crossed 0.09 mnt in July and rose by 0.04 mnt as compared to June.
  
  

According to BigMint's analysis, crude steel production in the UK decreased by 9% m-o-m, falling from 0.49 mnt in June to 0.45 mnt in July. As a result, the country had a surplus of ferrous scrap available to export.

Imports from the Netherlands rise: Turkish mills imported approximately 0.14 mnt of scrap from the Netherlands in July, a rise of 56% m-o-m from 0.09 mnt in June. On a y-o-y basis, imports decreased by 26% compared to 0.19 mnt during the same period last year.

In the first seven months of the year, imports increased by 14% y-o-y, from 1.27 mnt in January-July 2023 to 1.45 mnt in January-July 2024.

Scrap imports rise from Belgium: Ferrous scrap import volumes from Belgium witnessed a rise of 13% m-o-m to 0.1 mnt as compared to 0.09 mnt in June. Compared to July 2023's 0.14 mnt, import volumes significantly decreased by 29% on a y-o-y basis. In the first seven months of the year, imports decreased by 31% y-o-y from 1.08 mnt in January-July 2023 to 0.75 mnt in January-July 2024.

Imports from the US edge down: Ferrous scrap imports from the US inched down to 0.345 mnt in July from June's 0.352 mnt. Compared to July 2023's 0.62 mnt, imports fell significantly by 44% y-o-y. In the first seven months of the year, imports decreased by 6% y-o-y, from 2.62 mnt in January-July 2023 to 2.47 mnt in January-July 2024.

According to BigMint's analysis, US crude steel production rose by 4% from 6.66 mnt in June to 6.93 mnt in July, while ferrous scrap exports saw a slight 2% decline and stable ferrous scrap imports, indicating greater utilisation of scrap for domestic steelmaking.

• As per BigMint's vessel line-up data for bulk scrap, the import volume touched 0.35 mnt in July and rose by 0.05 mnt as compared to June.
  
  

Other regions such as Romania, Lithuania, France, Denmark, Finland, and Germany exported a total volume of 0.77 mnt in July.

Outlook

BigMint's vessel line-up tracker indicates that 1.35-1.4 mnt of bulk scrap will be imported in August, slightly below July's total. Most of these cargoes are scheduled to arrive in late September and early October.