Crude steel production in Turkey increased by 7.1 percent year on year in August this year to 3.5 million mt, achieving the highest monthly crude steel output of all time in Turkey, with the country maintaining its position in seventh place in the world crude steel production, according to a statement released by the Turkish Steel Producers’ Association (TCUD). In the January-August period this year, Turkey’s crude steel production totaled 26.6 million mt, rising by 16.7 percent year on year.
In the January-August period, Turkey’s finished steel consumption rose by 20.2 percent to 23.0 million mt, while in August alone finished steel consumption in Turkey decreased by 12.4 percent to 2.6 million mt, both year on year.
In August, Turkey’s steel exports increased by 70.9 percent to 1.9 million mt, while the value of these exports rose by 209.0 percent to $1.7 billion, year on year. Turkey’s exports in the January-August period stood at 12.7 million mt, up by 21.5 percent year on year, while the value of these exports came to $9.7 billion, up by 84.0 percent year on year.
In August, Turkey’s steel imports increased by 19.3 percent to 1.2 million mt, while the value of these imports moved up by 127.0 percent to $1.4 billion, both year on year. In the first eight months of the current year, imports increased by 30.6 percent to 10.8 million mt, while the value of these imports increased by 90.2 percent to $9.3 billion, both year on year.
According to the TCUD, Turkey’s crude steel production could reach 40 million mt by the end of the year. The fact that China, which accounts for 60 percent of world steel production, has started to reduce production and is directing current production towards domestic consumption in order to achieve emissions targets, has created a great opportunity for the Turkish steel industry. Turkish steel exporters increased their exports to the Far East by 59 percent in the January-August period. The country exported approximately 1.7 million mt to the Latin American market, up by 339 percent. On the other hand, despite the 11.9 percent increase in its hot rolled coil production, Turkey’s HRC exports decreased by 23 percent in August due to buoyant local demand.
Stating that the failure to control the increase in steel imports given the country’s ‘inward processing regime’ has reached unsustainable dimensions for the Turkish steel industry and the country’s foreign trade balance, the association said that the inward processing regime should be reviewed and established within a reasonable framework.