According to a statement released by the Turkish Steel Producers’ Association (TCUD), in September this year crude steel production in Turkey decreased by 19.0 percent year on year to 2.7 million mt, while in the January-September period the country’s crude steel production totaled 27.3 million mt, falling by 9.3 percent year on year.
In the January-September period, Turkey’s finished steel consumption fell by 5.2 percent to 24.1 million mt, while in September alone finished steel consumption in Turkey decreased by 3.2 percent to 2.1 million mt, both year on year.
In September, Turkey’s steel exports decreased by 31.2 percent to 1.4 million mt, while the value of these exports fell by 42.1 percent to $1.1 billion, year on year. Turkey’s steel exports in the January-September period stood at 12.5 million mt, down by 15.0 percent year on year, while the value of these exports came to $11.7 billion, up by 0.2 percent year on year.
In September, Turkey’s steel imports increased by 0.8 percent to 1.1 million mt, while the value of these imports moved down by 6.5 percent to $1.1 billion, both year on year. In the first nine months this year, steel imports decreased by five percent to 11.3 million mt, while the value of these imports increased by 17.6 percent to $12.4 billion, both year on year.
In the first nine months of the year, Turkey’s steel export to import ratio decreased to 94.5 percent, from 110.8 percent recorded in the same period of the previous year.
According to the TCUD, the increase in the share of electricity and natural gas in costs from eight percent to 30 percent caused a significant decline in the competitiveness of the Turkish steel industry in the domestic and foreign markets. This resulted in reduced shifts at plants and some production halts at plants. The decrease in the competitiveness of the Turkish steel industry was also reflected in the export figures. The TCUD stated that these developments, which led the capacity utilization rate to decline from 75 percent to 60 percent, strengthen the possibility of production continuing to decrease in the last quarter this year. In this context, it was stated that multi-dimensional steps should be taken to end the negative course recorded in the Turkish steel industry and that the application of different natural gas tariffs for industrial sectors should end.
