According to a statement released by the Turkish Steel Producers’ Association (TCUD), in August this year crude steel production in Turkey decreased by 21.0 percent year on year to 2.8 million mt, while in the January- August period the country’s crude steel production totaled 24.4 million mt, falling by 8.8 percent year on year.
In the January-August period, Turkey’s finished steel consumption fell by 5.4 percent to 21.9 million mt, while in August alone finished steel consumption in Turkey decreased by 12.1 percent to 2.3 million mt, both year on year.
In August, Turkey’s steel exports decreased by 25.0 percent to 1.4 million mt, while the value of these exports fell by 31.5 percent to $1.2 billion, year on year. Turkey’s steel exports in the January-August period stood at 11.1 million mt, down by 12.4 percent year on year, while the value of these exports came to $10.5 billion, up by 8.8 percent year on year.
In August, Turkey’s steel imports decreased by 7.1 percent to 1.1 million mt, while the value of these imports moved up by 7.9 percent to $1.3 billion, both year on year. In the first eight months this year, steel imports decreased by 5.6 percent to 10.2 million mt, while the value of these imports increased by 20.7 percent to $11.2 billion, both year on year.
In the first eight months of the year, Turkey’s steel export to import ratio decreased to 93.9 percent, from 104.2 percent recorded in the same period of the previous year.
According to the TCUD, the average month-on-month decreases of 18.3 percent in production and 14.3 percent in exports in the last three months do not yet reflect the negative impacts of the 50 percent hikes in electricity and natural gas prices and the new regulation made by the national gas supply company BOTAŞ on September 29. The association stated that the last quarter of the year will be difficult for the Turkish steel industry due to the energy price hikes. Although it had been thought that the temporary gap in supply in the European market, which was created by slowing down the activities of many steel plants in the region due to the energy crisis, would be met by the Turkish steel industry, this opportunity disappeared due to the price hikes in electricity in Turkey. In addition to rising energy costs, there are concerns that Europe’s attempts to limit scrap exports will disrupt the production activities of the Turkish steel industry.
