TCUD: Turkey’s steel output and exports to be supported by lower energy prices, import duty imposition

According to a statement released by the Turkish Steel Producers’ Association (TCUD), in January this year crude steel production in Turkey decreased by 17.6 percent year on year to 2.6 million mt.

In the given month, finished steel consumption in Turkey fell by 3.5 percent to 2.9 million mt, both year on year. 

In January, Turkey’s steel exports decreased by 42 percent to 733,000 mt, while the value of these exports fell by 48.3 percent to $605 million, year on year. 

In the first month of the current year, Turkey’s steel imports decreased by 9.1 percent to 1.2 million mt, while the value of these imports moved down by 21.2 percent to $1.1 billion, both year on year. 

In the given period, Turkey’s steel export to import ratio decreased to 55.3 percent, from 84.4 percent recorded in the same period of the previous year. 

According to the TCUD, with the decline in the country’s crude steel production in January, the capacity utilization rate decreased to 56.6 percent. Since the decline in energy prices was not reflected sufficiently in January costs, the exports of the Turkish steel industry, whose competitiveness has weakened, declined. 

Meanwhile, with the decision of the postponement of import duties on flat steel products, which was expected to come into effect on February 28, to April 1, concerns have been raised regarding increases in imports and thus the recovery of the steel export to import ratio could be delayed. 

The Turkish steel industry, which is expected to meet the steel requirements arising from reconstruction after the recent earthquakes, stated that it is ready to meet the needs for housing investments to be made in the earthquake zone at the prices existing on February 1, excluding the increases in input costs and exchange rates. 

Depending on the continuation of the decrease in energy prices in the coming months and the imposition of import duties as of April 1, it is expected that the production and exports of the Turkish steel industry will increase, and imported products will be substituted with new capacities.