According to a statement released by the Turkish Steel Producers’ Association (TCUD), in May this year crude steel production in Turkey decreased by 1.4 percent year on year to 3.2 million mt, while in the January-May period the country’s crude steel production totaled 16.0 million mt, falling by 2.8 percent year on year.
In the January-May period, Turkey’s finished steel consumption fell by 4.0 percent to 14.4 million mt, while in May alone finished steel consumption in Turkey increased by 0.7 percent to 2.9 million mt, both year on year.
In May, Turkey’s steel exports decreased by 23.6 percent to 1.3 million mt, while the value of these exports rose by 5.4 percent to $1.4 billion, year on year. Turkey’s steel exports in the January-May period stood at 7.0 million mt, down by 5.7 percent year on year, while the value of these exports came to $6.7 billion, up by 30.8 percent year on year.
In May, Turkey’s steel imports decreased by 22.7 percent to 1.2 million mt, while the value of these imports moved up by 3.1 percent to $1.3 billion, both year on year. In the first five months this year, steel imports decreased by 8.6 percent to 6.4 million mt, while the value of these imports increased by 28.0 percent to $7.0 billion, both year on year.
In the first five months of the year, Turkey’s steel export to import ratio increased to 96.4 percent, from 94.3 percent recorded in the same period of the previous year.
According to the TCUD, the fall seen in scrap prices since March was reflected in finished steel prices, and rebar and hot rolled coil (HRC) prices fell 34-40 percent. The association stated that, though not being traditional flat steel suppliers to Turkey, the UK, Brazil and India took advantage of Russia’s invasion of Ukraine and improved their flat steel exports to Turkey significantly. In May, Turkey’s billet imports from Russia, which has been giving significantly low offers amid sluggish local demand and the sanctions of Western countries, rose by 75 percent to 214.000 mt and exceeded the imports recorded in the first three months of this year. Meanwhile, Turkey’s production costs kept increasing and its steel production decreased. According to the TCUD, fair trade conditions must be ensured immediately in order to eliminate the negative effects on the steel sector, maintain the stability of production, bring new capacities online, and maintain the increase in investment and employment.