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Turkey: Ferrous scrap imports climb to 4-month high in Nov'21

Turkey, the world’s leading buyer of ferrous scrap, recorded imports of the material at 2.04 million tonnes (mn t) in Nov’21, an increase of 32% again...

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5 Jan 2022, 17:44 IST
Turkey: Ferrous scrap imports climb to 4-month high in Nov'21

Turkey, the world's leading buyer of ferrous scrap, recorded imports of the material at 2.04 million tonnes (mn t) in Nov'21, an increase of 32% against 1.55 mn t in Oct'21, as per SteelMint data. Import volumes have climbed to an almost four-month high against 2.34 mn t seen in Jul'21.

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

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

Imported scrap volumes into Turkey, however, rose slightly by 1% y-o-y from 2.01 mn t in Nov'20.

In the Jan-Nov'21 period, scrap imports into Turkey stood at 22 mn t, 10% higher against 20 mn t seen in the same period last year.

Market highlights:

  • US, Netherlands major exporters: The US stood as the top exporter of ferrous scrap to Turkey with 0.38 mn t in Nov'21 as against 0.29 mn t in Oct'21, a significant increase of 31% m-o-m. Buyers preferred to book US cargoes as the offers there were in agreement with demand of Turkish traders.

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

The Netherlands outpaced Russia to become the second-largest exporter with 0.31 mn t in Nov'21, followed by the UK at 0.14 mn t, as per SteelMint data.

  • Prices rise in Oct'21: SteelMint's assessment of US-origin HMS 1&2 (80:20) stood at $471/t CFR Turkey in Oct'21 against $441/t CFR in Sept'21, up by around $25-30/t m-o-m.

Turkey scrap prices

  • Lira crashes against the dollar: The Turkish lira plunged against the dollar. The lira hit a record low of TRY 12.13 against the US dollar in the end-Nov, vis-a-vis TRY 9.57 in end-Oct. The currency depreciated after President Erdogan recommended the interest rate cuts in key policies of the central bank.

Outlook

The imported scrap trade into Turkey is expected to remain on the positive side as buyers will remain active in booking the overseas material for Jan'22 shipments on winter restocking needs ahead of the New Year holidays.

 

5 Jan 2022, 17:44 IST

 

 

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