TCUD: Turkey’s steel consumption and output performance is promising

Monday, 02 November 2020 15:26:27 (GMT+3)   |   Istanbul
       

Crude steel production in Turkey increased by 18 percent year on year in September this year to 3.2 million mt, according to a statement released by the Turkish Steel Producers’ Association (TCUD). Turkish crude steel production, which increased by 6.9 percent in the first quarter of the year, decreased by 16.8 percent in the second quarter due to the coronavirus pandemic. There was an upward trend in production in June, and crude steel production increased by 16.6 percent in the third quarter. In the January-September period this year, Turkey’s crude steel production totaled 25.9 million mt, rising by 2.6 percent year on year.

In the January-September period, Turkey’s finished steel consumption rose by 14.9 percent to 21.9 million mt, while in September alone finished steel consumption in Turkey increased by 27.7 percent to 2.8 million mt, both year on year. Turkish steel consumption, which increased by 42.7 percent in the first quarter and decreased by 16.9 percent in the second quarter, recorded an increase of 25.2 percent in the third quarter, year on year.   

In September, Turkey’s steel exports increased by 0.8 percent to 1.9 million mt, while the value of these exports decreased by 3.9 percent to $1.3 billion, year on year. Exports in the January-September period stood at 15 million mt, down by 9.1 percent year on year, while the value of exports during this period was $10.4 billion, down by 14.7 percent year on year.

In September, Turkey’s steel imports increased by 10.1 percent to 1.2 million mt, while the value of these imports moved down by three percent to $881 million, both year on year. In the first nine months of the current year, steel imports increased by 8.9 percent to 10 million mt, while the value of these imports decreased by 4.9 percent to $7.2 billion, both year on year.

According to the association, Turkey’s crude steel production entered an upward trend as of June and maintained its upward trend in September. The country’s capacity utilization rate was 78.2 percent in September, while it was 69.8 percent in the January-September period. With its production recorded in the first nine months of the current year, Turkey became the largest steel producer in Europe and became the seventh largest crude steel producer in the world, leaving Germany behind. Turkey’s exports fell by 10 percent due to safeguard measures, but its imports increased. Turkey’s steel exports to the EU decreased by 19.4 percent in 2019 and by 24.9 percent in the first nine months of the current year, both due to intensive safeguard measures, while its imports rose by four percent in 2019 and by 0.8 percent in the first nine months this year, all year on year. Turkey’s steel consumption and production performances constituted a promising indicator. The TCUD stated that, in order to improve this indicator in the coming months, it is necessary to review the mechanisms that encourage imports, especially the inward processing regime, and to intensify initiatives to remove the protectionist practices of the US and the EU.


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