After the share of energy in the total cost of the Turkish steel industry increased from 8 percent to 28 percent, the contraction observed in production continued with a rate of 17.8 percent in October, and it was emphasized that the production decreased by 10.1 percent in the first 10 months of the year. . In the evaluation made, it is considered that, as of the first quarter of 2023, a recovery process can be started in adverse conditions, depending on the measures taken to increase steel consumption in the manufacturing industry, especially the projects related to the housing sector, reducing energy prices to reasonable levels, and preventing the importation of poor quality and dumped products. it was said.
RAW STEEL PRODUCTION DROPPED
According to the announced data, Turkey's crude steel production in October 2022 decreased by 17.8 percent compared to the same month of the previous year and became 2.9 million tons. In the first 10 months of the year, the production decreased by 10.1 percent and amounted to 30.2 million tons. Final product consumption was 2.8 million tons in October with an increase of 11.5 percent compared to the same month of 2021, and 27.1 million tons with a decrease of 2.5 percent as of the first 10 months of the year.
STEEL EXPORTS DECREASED, IMPORTS INCREASED
In October, exports of steel products amounted to 1.1 million tons with a decrease of 42.3 percent in terms of quantity and 853.5 million dollars with a decrease of 51.3 percent in terms of value. In the January-October period, compared to the same period of 2021, exports amounted to 13.6 million tons with a decrease of 18 percent in quantity and 12.6 billion dollars with a decrease of 6.5 percent in value. Compared to the same month of 2021, imports in October rose to 1.2 million tons with an increase of 11.6 percent in terms of quantity and 1.1 billion dollars with a decrease of 9.9 percent in terms of value. In the first 10 months of 2022, imports, compared to the same period of the previous year, amounted to 12.5 million tons with a decrease of 3.6 percent in terms of quantity and 13.5 billion dollars with an increase of 14.8 percent in terms of value. While the share of imports in steel products consumption was 31.4 percent, The share of imports in flat product consumption reached 51 percent. The ratio of exports to imports, which was 114.5 percent in the first 10 months of 2021, decreased to 93.3 percent in the same period of this year.
WORLD RAW STEEL PRODUCTION DROPPED IN THE FIRST 10 MONTHS
According to the October 2022 data announced by the World Steel Association (Worldsteel), world crude steel production amounted to 147.3 million tons without any change compared to the same month of the previous year, and 1.55 billion tons with a decrease of 3.9 percent in the first 10 months of the year. In the first 10 months of the year, China's crude steel production decreased by 2.2 percent compared to the same period of 2021 to 860.6 million tons, while India's crude steel production, which ranked second, increased by 6.1 percent to 103.8 million tons. , Japan's production decreased by 6.5 percent to 75.2 million tons.
“INCENT ORIGIN PRODUCTS WILL INCREASED INTO THE TURKISH MARKET WITH CHEAP PRICES”
In the evaluation, which stated that steel consumption decreased in the EU market, which was in recession due to the effects of the Russia-Ukraine war, the 25 percent decrease in our steel product exports to the EU, which is the largest market in terms of the steel industry, means that the Gulf countries, which are in a more advantageous position compared to our country in terms of energy costs, will benefit the Southeast Asian countries. The 78 percent decline observed in the said market caused our exports of steel products to contract by 18 percent in the first 10 months of the year. The decrease in our exports by 42.3 percent in terms of quantity and 51.3 percent in terms of value in October clearly demonstrates the devastating effect of high energy hikes on our competitiveness and foreign trade deficit. While production and exports decreased, Russia, The increase in imports from India and China continued. Billet imports from Russia, which reduced billet prices and headed towards our country, increased by 148 percent in October. In the first 10 months of the year, HRC imports from China rose from 161 thousand tons to 669 thousand tons. On the other hand, after the abolition of the tax on steel exports by India, one of the world's largest producers, a significant increase will be experienced in the entry of Indian origin products to the Turkish market at cheaper prices, and India, which is one of Turkey's biggest competitors in the flat steel markets, will benefit from the weakening of our competitive power. It is evaluated that it can turn to the markets.” expressions were used. Billet imports in October increased by 148 percent. In the first 10 months of the year, HRC imports from China rose from 161 thousand tons to 669 thousand tons. On the other hand, after the abolition of the tax on steel exports by India, one of the world's largest producers, a significant increase will be experienced in the entry of Indian origin products to the Turkish market at cheaper prices, and India, which is one of Turkey's biggest competitors in the flat steel markets, will benefit from the weakening of our competitive power. It is evaluated that it can turn to the markets.” expressions were used. Billet imports in October increased by 148 percent. In the first 10 months of the year, HRC imports from China rose from 161 thousand tons to 669 thousand tons. On the other hand, after the abolition of the tax on steel exports by India, one of the world's largest producers, a significant increase will be experienced in the entry of Indian origin products to the Turkish market at cheaper prices, and India, which is one of Turkey's biggest competitors in the flat steel markets, will benefit from the weakening of our competitive power. It is evaluated that it can turn to the markets.” expressions were used.
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