Crude steel production in Turkey decreased by 28.9 percent year on year in February this year to 2.1 million mt due to production cuts resulting from the earthquakes on February 6, according to a statement released by the Turkish Steel Producers’ Association (TCUD). In the January-February period this year, Turkey produced 4.7 million mt of crude steel, down by 23.1 percent year on year. In February, the Turkish steel industry ranked 10th in world crude steel production.
In February, Turkey’s finished steel consumption fell by 12.0 percent to 2.5 million mt, while in the January-February period this year its finished steel consumption decreased by 7.7 percent to 5.5 million mt, both year on year.
In February, Turkey’s steel exports decreased by 47.3 percent to 675,000 mt, while the value of these exports declined by 50.5 percent to $582 million, year on year. In the January-February period this year, the country’s steel exports decreased by 44.9 percent to 1.4 million mt as the negative impact of the increase in energy costs partially continued despite reductions, while the value of these exports fell by 49.5 percent to $1.2 billion, both year on year.
In February, Turkey’s steel imports decreased by 10.7 percent to 1.3 million mt, while the value of these imports moved down by 32.0 percent to $1 billion, both year on year. In the first two months this year, the country’s steel imports decreased by 10.0 percent to 2.5 million mt, while the value of these imports fell by 27.0 percent to $2.1 billion, both year on year.
In the January-February period, Turkey’s steel export to import ratio decreased to 55.3 percent, from 80.1 percent recorded in the same period of the previous year.
According to the association, countries such as Algeria and Egypt, which have an advantage in terms of natural gas prices compared to Turkey, have started to take a share from Turkey’s export markets. If natural gas prices are reduced to the price levels in Europe, it is expected that the losses in Turkey’s exports will be partially compensated for in the coming months, with the increase in the competitiveness of the Turkish steel industry and the targeting of new markets such as the Balkans, South America and Africa through trade delegations.
Meanwhile, the postponement of implementation of the import duty decision on flat steel products to May 1 instead of April 1 has raised concerns that the current high level of the steel foreign trade deficit may widen. In addition, the resumption of production by steelmakers operating in the earthquake-hit zone has created expectations that the production, which fell in the first two months of 2023, will gradually improve as of the second quarter of the year.