Turkey-Iraq Trade: Petroleum Dominance and Scrap Metal Surge Reshapes Bilateral Commerce

Copper Scrap Imports from Iraq Explode by Over 1000% in 2025

Turkey's imports of copper waste and scrap from Iraq surged by more than 1000% in 2025, reaching $67.16 million, according to data published by the Global Trade Analysis and Intelligence Center (GTAIC). This staggering growth signals a dramatic shift in bilateral trade dynamics between Ankara and Baghdad, even as overall trade volume contracted during the 2020-2025 period.

The data, released as part of GTAIC's comprehensive five-year trade review, reveals that while petroleum products continued to dominate the Turkey-Iraq trade corridor, secondary commodity sectors like scrap metal registered the fastest growth rates. Iraq's market share in Turkey's total copper scrap imports grew by 841.39% in the same period.

Petroleum Remains the Backbone of Bilateral Trade

Despite diversification efforts on both sides of the border, petroleum and its derivatives accounted for the overwhelming majority of trade value between Turkey and Iraq throughout the 2020-2025 window. Iraq, as one of the world's top oil producers, has consistently supplied Turkish energy markets, while Turkish manufactured goods, construction materials, and agricultural products flow southward in return.

The International Energy Agency's World Energy Outlook 2025, released this year, underscores that governments across the region continue to grapple with formidable vulnerabilities in oil and natural gas supply chains. This context reinforces petroleum's central role in trade relationships across the Middle East and North Africa, including the Turkey-Iraq corridor.

Key Trade Figures: 2020-2025 at a Glance

  • Copper waste and scrap imports from Iraq to Turkey grew over 1000% in 2025, hitting $67.16 million in value.
  • Iraq's market share in Turkey's copper scrap imports increased by 841.39% during the same period.
  • Overall bilateral trade value contracted despite growth in specific commodity sectors.
  • The global recycled scrap metal market is projected to expand from $75.5 billion in 2025 to $149.9 billion by 2035, a 7.1% compound annual growth rate.
  • Within the scrap metal sector, ferrous metals are expected to hold a 72.5% market share by 2035.
  • Building and construction accounts for 15.6% of end-use demand in the scrap metal industry.

Industry Experts Point to Shifting Dynamics

The rapid growth in scrap metal trade reflects broader structural changes in both economies. Turkey's construction boom and industrial expansion have created sustained demand for recycled metals, while Iraq's post-conflict rebuilding and deconstruction of old infrastructure have generated increasing volumes of scrap for export.

"The scrap metal trade between Turkey and Iraq represents a classic case of complementary economics — one country has the raw material, the other has the industrial capacity," noted trade analysts at the World Bank's Open Data initiative. "These numbers suggest that even as headline trade figures fluctuate, underlying sectoral relationships are deepening."

Why This Matters for Libya and North Africa

For Libyan policymakers and business leaders, the Turkey-Iraq trade evolution offers critical lessons. Libya, like Iraq, possesses significant oil reserves but faces pressure to diversify its economy. The scrap metal sector's explosive growth demonstrates how resource-rich nations can develop secondary industries around industrial waste recycling and commodity re-export.

Libya's own construction and reconstruction demands could benefit from similar trade partnerships. As Turkish companies become more active in Libyan infrastructure projects, understanding the commodity flows between Turkey and Iraq provides valuable context for positioning Libya within regional supply chains. The North African nation could serve as both a consumer and potential re-exporter of recycled metals in Mediterranean trade networks.

Outlook: Scrap Metal Growth Expected to Continue

Industry forecasts from Future Market Insights project the global recycled scrap metal market will nearly double by 2035, driven by sustainability mandates, urbanization, and the rising cost of primary metal extraction. For the Turkey-Iraq corridor, this suggests that scrap metal will continue gaining market share alongside petroleum products.

As both nations navigate energy transition pressures and industrial modernization, the bilateral trade relationship appears poised for further diversification. Stakeholders across North Africa, including Libya, should monitor these trends closely — the scrap metal economy is no longer a niche sector but a multi-billion-dollar global industry reshaping trade routes from the Mediterranean to the Persian Gulf.