Crude steel production in Turkey decreased by 20.6 percent year on year in April this year to 2.7 million mt, according to a statement released by the Turkish Steel Producers’ Association (TCUD). In the January-April period this year, Turkey produced 10.1 million mt of crude steel, down by 21.3 percent year on year due to the temporary suspension of the activities of producers in the earthquake-hit zone in southern Turkey, the decline in exports, and the increase in the share of domestic demand directed to imports. The Turkish steel industry, which ranked 9th in world crude steel production in the first three months this year, ranked 10th in the first four months of the year.
In April, Turkey’s finished steel consumption rose by 16.2 percent to 3.5 million mt, while in the January-April period this year the country’s finished steel consumption increased by 7.9 percent to 12.5 million mt, both year on year.
In April, Turkey’s steel exports decreased by 55.2 percent to 629,900 mt, while the value of these exports declined by 59.9 percent to $566.4 million, year on year. In the first four months this year, the country’s steel exports decreased by 50.1 percent to 2.8 million mt, while the value of these exports fell by 53.8 percent to $2.5 billion, both year on year.
In April, Turkey’s steel imports increased by 30.4 percent to 1.7 million mt, while the value of these imports moved down by 0.2 percent to $1.4 billion, both year on year. In the first four months this year, the country’s steel imports increased by 11.9 percent to 5.9 million mt, while the value of these imports fell by 12.6 percent to $4.9 billion, both year on year.
In the January-April period, Turkey’s steel export to import ratio decreased to 49.8 percent, from 94.3 percent recorded in the same period of the previous year.
According to the association, the decline in the country’s steel exports in the first four months was due to factors such as the EU countries’ support for energy-intensive industries, the pressure on exchange rates since August, the continuation of safeguard measures and the contraction in global demand. Meanwhile, the high difference in the foreign exchange buying-selling spread created additional costs for Turkish exporters, negatively affecting their competitiveness. Imports increased significantly, especially from Far Eastern countries with advantages in input costs, which have been focusing on the Turkish market.
The association stated that similar safeguard measures to those the US and the EU implement should be adopted, and that imports of products with sufficient local production capacity within the scope of the inward processing regime should be limited in order to increase the competitiveness of the Turkish steel industry.