According to a statement released by the Turkish Steel Producers’ Association (TCUD), in January this year crude steel production in Turkey increased by 24.7 percent year on year to 3.2 million mt, ranking seventh among crude steel producing countries globally. With this performance, Turkey has become the largest steel producer in Europe, leaving Germany behind.
In the given month, finished steel consumption in Turkey rose by 19.5 percent to 3.5 million mt, both year on year.
In January, Turkey’s steel exports increased by 23 percent to 894,700 mt, while the value of these exports rose by 10.1 percent to $662.1 million, year on year. Looking at the exported products, flat and long product exports in the given month amounted to 347,800 mt and 536,700 mt, respectively, with an increase of 89.1 percent and two percent year on year, while semi-finished product exports decreased by 41.3 percent year on year to 10,200 mt.
In the first month of the current year, Turkey’s steel imports increased by 12.4 percent to 1.4 million mt, while the value of these imports moved down by 1.6 percent to $1.1 billion, both year on year. Looking at the imported products, flat and long product exports in the given month amounted to 735,900 mt and 98,800 mt, respectively, with an increase of 8.8 percent and a decrease of 29.1 percent year on year, while semi-finished product exports increased by 32.1 percent year on year to 549,300 mt.
In the given period, Turkey’s steel export to import ratio increased to 61.6 percent, from 55.1 percent recorded in the same period of the previous year.
According to the TCUD, although consumption increased in January, the share of imports in consumption decreased by 2.8 points year on year to 38.4 percent. On the export side, the acceleration of investments in high-value-added special steel products such as stainless steel, armor steel, train wheels and rails, especially in recent years, was effective in increasing flat product exports in January. Meanwhile, the Red Sea crisis has limited the increase in long product exports.
The association forecasts that, if interest rates decrease and steel consumption improves in the EU starting from the second quarter of 2024, the increase in Turkey’s steel exports may continue throughout the year. Meanwhile, the possibility that China - which focused on exports instead of its domestic market due to economic difficulties in 2023 - may continue to increase its exports at subsidized and dumped prices this year poses a threat to the Turkish steel industry, the TCUD noted.