Turkey's crude steel production decreased by 12.1%

Turkish Steel Producers Association (TÇÜD) announced crude steel production, consumption and foreign trade data for August.

Accordingly, in the January-August period, crude steel production decreased by 12.1% to 21.6 million tons.

Final product consumption was 2.8 million tons in August, with an increase of 19.5% compared to the same month of 2022, and 26.1 million tons with an increase of 17.4% in the January-August period.

Exports of steel products decreased by 41.8%

In August, steel product exports decreased by 25.4% in quantity to 1 million tons and value decreased by 33.4% to 775.8 million dollars, compared to the same month of 2022.

In the January-August period, compared to the same period of 2022, exports decreased by 41.8% in quantity to 6.4 million tons and in value by 49.1% to 5.3 billion dollars.

Imports increased by 21.4%

In August 2023, imports of steel products amounted to 1.3 million tons, with an increase of 17% in quantity, and 1.1 billion dollars, with a decrease of 8.9% in value, compared to the same month of 2022.

In the January-August period, compared to the same period of 2022, imports increased by 21.4% in quantity to 12.4 million tons and decreased by 5.2% in value to 10.6 billion dollars.

Import coverage ratio decreased by 50%

The export-import coverage ratio, which was 93.3% in the eight months of 2022, decreased to 50% in the same period of 2023.

World steel production increased, Turkey's decreased

While world steel production increased on a seasonal basis for the first time this year in the first 8 months of 2023, Turkey's crude steel production decreased by 12.1%. Finished product consumption continued to increase by 17.4%.

Wire rod imports increased by 99% in the first 8 months of the year

In the 8-month period, the increase in wire rod imports reached extraordinary levels. Especially in 2022, Turkey did not import wire rod; With wire rod imports from Malaysia and Egypt to Turkey exceeding the level of 100 thousand tons per country, total wire rod imports increased by 99% in the first 8 months of the year, reaching 537.5 thousand tons.

Total steel imports reached 12.4 million tons

On the other hand, hot rolled sheet imports from China, which turned to exports due to the economic stagnation in its domestic market, reached 1.4 million tons with an increase of 162%. Especially China; The extraordinary increases in imports from South Korea, Japan and Indonesia continued. In light of all these developments, our total steel product imports increased by 21.4% in the first 8 months of the year, reaching 12.4 million tons.

Exports of steel products decreased by 41.8% in the first 8 months of the year

See the description; On the export front, due to the weak demand in Europe and the fact that the People's Republic of China and the Middle Eastern countries, which are in an advantageous position compared to Turkey in terms of input costs, especially energy, and benefit from versatile state aid, have increased their concentration in the markets, Turkey's accession to the EU Exports to the USA decreased by 45% to 1.6 million tons, and exports to the USA decreased by 74.5% to 137 thousand tons. As a result of the decreases in export levels to other regions, the deficit in steel foreign trade continued to increase, as total steel product exports decreased by 41.8% to 6.4 million tons in the first 8 months of the year. The decline in the export-import coverage ratio from 93.3% to 50% clearly revealed that the deficit had reached unsustainable levels for both the steel industry and the Turkish economy.

As we enter the last quarter of the year, in order to take the necessary steps to relax the protectionist approaches implemented against Turkey, and on the other hand, to reduce energy input costs and prevent extraordinary increases in imports, the inward processing regime should be placed within a framework that will encourage domestic input supply, and the problems observed in the steel industry should be taken. It is vital to eliminate negative conditions and achieve the MTP targets.