According to a statement released by the Turkish Steel Producers’ Association (TCUD), in July this year crude steel production in Turkey decreased by 20.7 percent year on year to 2.7 million mt, while in the January-July period the country’s crude steel production totaled 21.6 million mt, falling by 6.9 percent year on year.
In the January-July period, Turkey’s finished steel consumption fell by 3.6 percent to 19.6 million mt, while in July alone finished steel consumption in Turkey decreased by 11.2 percent to 2.7 million mt, both year on year.
In July, Turkey’s steel exports decreased by 22.8 percent to 1.2 million mt, while the value of these exports fell by 19.4 percent to $1.1 billion, year on year. Turkey’s steel exports in the January-July period stood at 9.7 million mt, down by 10.2 percent year on year, while the value of these exports came to $9.4 billion, up by 17.5 percent year on year.
In July, Turkey’s steel imports decreased by 1.8 percent to 1.3 million mt, while the value of these imports moved up by 12.9 percent to $1.5 billion, both year on year. In the first seven months this year, steel imports decreased by 5.4 percent to 9.1 million mt, while the value of these imports increased by 25.6 percent to $10.0 billion, both year on year.
In the first seven months of the year, Turkey’s steel export to import ratio decreased to 94.0 percent, from 100.6 percent recorded in the same period of the previous year.
According to the TCUD, the acceleration of the decline in the country’s output has increased concerns. In addition to the unfavorable global market conditions, Russia’s suppression of the Turkish domestic market with low prices and local Turkish producers’ inability to compete with these prices, and their consequent reduction or halting of production, were effective in this decline. In the given month, Turkish steel producers’ capacity utilization fell to 59.7 percent from 75.2 percent in July 2021. In July this year, Turkey’s steel export to import ratio decreased to 101.0 percent, from 72.0 percent recorded in the same month of the previous year. With the approximate 50 percent hike in energy prices and the recession in export markets, especially in Europe, Turkish producers’ concerns regarding the situation will increase in the coming months. The TCUD stated that the increase in imports of semi-finished products from Russia, China and India should be controlled and steps should be taken to increase the use of domestic products in order to control the decline in production and to sustain exports.