Crude steel production in Turkey increased by 7.5 percent year on year in July this year to 3.1 million mt, according to a statement released by the Turkish Steel Producers' Association (TCUD). In the January-July period this year, Turkey’s crude steel production totaled 19.4 million mt, declining by 2.4 percent year on year.
In the January-July period, Turkey’s finished steel consumption rose by 10.4 percent to 16.1 million mt, while in July finished steel consumption in Turkey increased by 20.2 percent to 2.7 million mt, both year on year.
In July, Turkey’s steel exports decreased by 1.6 percent to 1.9 million mt, while the value of these exports fell by 8.7 percent to $1.3 billion, year on year. Exports in the January-July period stood at 11.8 million mt, down by 9.9 percent year on year, while the value of exports during this period was $8.1 million, down by 15.8 percent year on year.
In July, Turkey’s steel imports increased by 17.4 percent to 1.2 million mt, while the value of these imports moved down by 11.1 percent to $792 million, both year on year. In the first seven months of the current year, imports increased by 11.6 percent to 7.7 million mt, while the value of these imports decreased by 4.1 percent to $5.6 billion, both year on year.
According to the association, the negativities experienced globally reduced Turkey’s exports and continued to increase its imports. Turkey’s steel exports to the EU decreased by 21 percent in the first seven months of the year due to the EU’s safeguard measures, while its exports to the US increased by 145 percent in this period due to the reduction of custom duties to 25 percent. In the January-July period this year, the share of imports in Turkey’s steel consumption was 52 percent, while the capacity utilization rate remained at 67 percent. Given the unutilized capacity, the increase in the imports is considered “unacceptable” in terms of Turkey’s economy, the TCUD stated. Since a large part of the quotas imposed by the EU have been exhausted, it is estimated that Turkey’s exports to the EU will come to a standstill and that the ratio of exports to imports, which was 162 percent in July, will decrease significantly in August. The TCUD forecasts, that despite all negativities, Turkey’s steel industry will continue to grow in the second half of the year due to the increase in domestic consumption.