Turkey: Ferrous scrap imports increase 10% in CY’21

Turkey, the world’s leading buyer of ferrous scrap, recorded imports of the material at 24.37 million tonnes (mnt) in CY’21 (Jan-Dec’21), an increase of 10% against 22.16 mnt in CY’20, as per SteelMint data.

On a m-o-m basis, Turkey’s ferrous scrap imports rose by 22% to 2.49 mnt in Dec’21 vis-a-vis 2.04 mnt in Nov’21, as per SteelMint data. Notably, import volumes climbed to the highest level in Dec’21 compared to the balance 11 months of the year.

Looking at Turkey’s scrap imports y-o-y in detail, USA secured number one position among suppliers to Turkey with 3.77 mnt in CY’21 followed by the Netherlands and UK with 3.21 mnt and 2.33 mnt respectively.

Reasons for improved imports:

Turkey’s crude steel production increased by 13% y-o-y to 40 mnt in CY’21, as per data released by worldsteel (WSA). Higher crude steel output resulted in increased scrap consumption.

Imported ferrous scrap demand in the Turkish market rebounded in CY’21 as mills remained active in booking deep-sea scrap cargoes throughout the year with buying interest picking up slightly.

There was an improvement in the demand for billets and long steel products in the Turkish market. Market participants believe that strong demand for billets kept scrap bookings active.

• USA, Netherlands emerge as major exporters: USA stood as the top exporter of ferrous scrap to Turkey with 3.77 mnt in Jan-Dec’21. The Netherlands was the second-largest exporter with 3.21 mnt, followed by the UK at 2.33 mn t, as per SteelMint data.

In addition, freight rates from the US coast to Turkey fell which eased export prices of scrap, enhancing the interest of buyers.

• Automotive sales rise in CY’21: According to the Turkish Automotive Manufacturers’ Association (OSD), total car production in CY’21 stood at 1,276,140 units wherein the total exports amounted to 937,005 units in CY’21 marking an increase of 2% as compared to 916,538 units in CY’20.

Prices rise in CY’21: SteelMint’s assessment of US-origin HMS 1&2 (80:20) stood at $459/t CFR Turkey in Jan-Dec’21 against $291/t CFR in Jan-Dec’20, up by around $168/t CFR Turkey y-o-y.

Outlook
Turkish steel mills may close for maintenance or opt for production cutdown during winter. Hence, it is expected that the market would remain quiet for Feb’22 cargo shipment bookings.