In a notable shift in the steel market, Turkey has significantly increased its imports of steel billets from Ukraine in 2024. Data from the Turkish Statistical Institute reveals that between January and August 2024, Turkish consumers imported 108.51 thousand metric tons of billets from Ukraine. This figure marks a remarkable increase of 2.3 times compared to the same period in 2023.
While Ukraine's steel billets have seen a surge in demand, the overall imports of billets by Turkish consumers have not fared as well. The total import of billets during the first eight months of 2024 reached approximately 1.86 million metric tons, which reflects a significant decrease of 24.6% year-on-year. This decline can be attributed to various factors, including changing market dynamics and the global steel industry's volatility.
In terms of financial impact, the cost of these imports has also decreased. The total expenditure on billet imports fell by 28.5% year-on-year, amounting to $1.05 billion during the same eight-month period.
Turkey's steel billet import landscape is dominated by several key suppliers, each contributing varying volumes:
1. Russian Federation: 381.15 thousand metric tons (-65.8% y/y)
2. Malaysia: 315.52 thousand metric tons (+105.9% y/y)
3. Algeria: 233.7 thousand metric tons (-44.7% y/y)
4. Indonesia: 223.86 thousand metric tons
5. Ukraine: 108.51 thousand metric tons (+230% y/y)
The data indicates that while Ukraine's exports to Turkey are on the rise, Russian shipments have seen a substantial decline of 65.8%, highlighting a shifting landscape in supplier dynamics.
In August 2024 alone, Turkish steelmakers imported 273.06 thousand metric tons of billets. This represented an increase of 4.5% from July and a robust 25.1% year-on-year growth. Notably, import costs during this month also experienced a slight uptick, rising by 2.6% month-on-month and 21.7% year-on-year to reach $148.46 million.
For the first time in August 2024, Ukraine contributed 13.56 thousand metric tons of billets to Turkey, marking a significant turnaround from the previous year when no exports were recorded during that month.
Historically, Turkey had ramped up its billet imports in 2023, increasing by 22% from the previous year to reach a total of 3.07 million metric tons. The leading suppliers during that period included the Russian Federation, which provided 1.39 million metric tons (down 7.3% y/y), and Algeria, which surged to supply 547.5 thousand metric tons (up 392% y/y).
Despite challenges in 2023, Ukrainian steelmakers shipped 67.13 thousand metric tons of billets to Turkish consumers, reflecting a 42.9% decline compared to 2022. However, in 2024, the situation appears to be turning around. With the establishment of a new sea corridor and a growing demand from Turkey, Ukrainian steelmakers are likely to increase their exports to alternative markets, particularly within the EU and Turkey.
