Turkiye reduced scrap imports by 8.2% m/m in November 2022

In January-November 2022, the import of raw materials decreased by 12.8% year-on-year

In November 2022, steel companies of Turkiye reduced the import of scrap metal by 8.2% compared to the previous month – to 1.33 million tons. SteelOrbis reports about it with the reference to the data of the Turkish Steel Producers Association (TCUD).

In January-November 2022, the volume of raw material imports decreased by 12.8% compared to the same period in 2021 – to 19.66 million tons.

The European Union became the main supplier of scrap metal to Turkiye in 11 months of 2022. During this period, Turkish steelmakers bought 10.5 million tons of scrap from the EU, which is 9.7% less than in January-November 2021. In second place are deliveries from the USA – 3.67 million tons (+7.2%). The CIS countries and Ukraine in January-November 2022 exported a total of 870,000 tons of scrap to Turkiye, which is 65.5% lower than last year.

The decrease in the volume of scrap imports into the country is associated with the low workload of local steel mills. In mid-August, the factories reported on possible production stoppages due to low demand and high energy costs. Producers cannot raise the prices of their products either in the domestic or in the export markets, due to which the production of steel becomes unprofitable.

Since September 2022, Turkiye raised prices for electricity and gas for the industry by 50%, which will further worsen the situation for local steelmakers.

As GMK Center reported earlier, in 2021, Turkiye increased imports of scrap metal by 11.5% compared to 2020 – up to 25.1 million tons. The CIS countries and Ukraine in 2021 exported a total of 2.65 million tons of scrap to Turkish steelmakers, which is 9.7% more on an annual basis.

Turkiye is the seventh largest steel producer in the world. In 2021, Turkish steel plants increased steel production by 12.7% compared to 2020, to 40 million tons. This is a record result.