During the "New Horizons in Global Steel Markets" 10th Annual Conference organized by SteelOrbis in Istanbul on November 19, Dr. Veysel Yayan, general secretary of the Turkish Steel Producers Association, said that Turkey is expected to close 2015 with an annual crude steel output of 32 million mt, down 11 percent compared to 2012. The 17-15 percent growth trend in Turkey’s crude steel output ended in 2012. In the first 10 months of the current year, Turkey’s crude steel output decreased by seven percent compared to the same period last year.
Dr. Yayan stated that in the January-October period of the current year, while Turkey’s crude steel output decreased by seven percent, its finished steel output increased by three percent because of the significant rise in billet and slab imports. In 2015, the capacity utilization rate in the Turkish steel industry has declined to the unsustainable level of 44 percent, he said.
On the other hand, Turkey’s steel consumption increased by 12.4 percent in the first nine months of the current year, and this growth is expected to continue thanks to some projects, which were surrounded by uncertainty before the elections, but which are now expected to accelerate under the new government. The Turkish Steel Producers Association general secretary stated that the increased consumption is also expected to affect steel production and so the outlook for the domestic steel industry for 2016 is positive.
According to the 2014 figures, Turkey's steel exports dropped to eighth place from seventh place in the world rankings, and in 2015 they are expected to decline further. On the other hand, in 2014 Turkey’s steel imports rose to seventh place from ninth place in the world rankings. Turkey’s steel imports are expected to reach 19 million mt in 2015, with Turkey thereby expected to rise to fourth or fifth place.
Commenting on the increase in Turkey’s steel imports from China, Dr. Yayan said that the annual import volume had been 500,000 mt in recent years, whereas in the first nine months of the current year it increased to 2 million mt, while for the full year it is expected to reach 3 million mt despite the softening seen in August and September.
Dr. Yayan warned that the problems caused by China will also affect other sectors and that, accordingly, no one should remain silent as regards China. He ended his words by saying that China should adjust its capacity in line with its own consumption, adding that it should not harm other countries in order to sustain its own industry.