Turkish iron and steel sector stopped its downward trend in the first half of 2024

In the 6-month period of 2024, Turkey increased its iron and steel exports by 31 percent from 6.7 million tons to 8.8 million tons. The export revenue of the iron and steel sector increased from $8 billion 178 million to $8 billion 853 million.

Stating that they lost their competitiveness in export markets to Far Eastern countries as of the third quarter of 2022 due to the increase in input costs caused by high energy prices and high inflation in Turkey, Yalçın Ertan, Deputy Coordinator Chairman of the Aegean Exporters' Associations and President of the Aegean Iron and Nonferrous Metals Exporters' Association, reported that Europe's share in Turkey's iron and steel exports decreased from 45 percent to 32 percent in the 1.5-year period.

“We lost our markets in Europe to China, South Korea, Japan and Vietnam in 2022 and 2023,” Ertan added: “After the Israeli-Palestinian war, Suez crossings started to decrease rapidly from January 2024 due to problems in the Suez Canal.
High inputs are still in the same place, there is no improvement there. Moreover, there is also the negativity of the recent electricity hike. Input costs in other items are constantly increasing. “In addition to the high energy costs that put a great burden on our sector, there are also the investments that exporter companies have to make within the scope of compliance with the European Green Deal. If we add the fact that the exchange rate increase remains low against the increase in inflation and the obligation to exchange foreign currency, all of these constitute a major obstacle for exporters. On the other hand, the issue of a change in the inward processing regime is on the agenda. I would like to underline that it is essential to make an arrangement that will not put our sector at a disadvantage against its competitors.”

Product pattern in exports changed, Aegean Region lagged behind

Stating that the exports of the Aegean Ferrous and Nonferrous Metals Exporters' Association decreased by 8 percent from 1 billion 286 million dollars to 1 billion 181 million dollars in the January - June period of 2024, Ertan noted, “The export items of the Aegean Region are mainly profiles and construction steel. In Turkey as a whole, the increase is mainly due to construction steel, hot flat rolls, cold flat rolls, coated flat products and pipes. The momentum here is also pulling Turkey in general upwards. Since our exports of these flat products are at a lower level, it pulls us down. Also, construction steel exports in the Aegean Region are mainly to Yemen. Construction steel exports to Yemen decreased compared to last year due to the problems there. When all these things come on top of each other, our exports lagged behind Turkey in general. We were higher last year, which is why profile exports increased much more last year. Since the exported product pattern has changed, we, as the Aegean Region, have fallen slightly behind the average of Turkey. However, as the Aegean Ferrous and Non-Ferrous Metals Exporters' Association, our exports for the last 12 months are still hovering around 2.5 billion dollars.”

Turkish iron and steel exported mostly to Germany

The leading countries in Turkey's iron and steel exports in the first half of 2024 were Germany with 1 billion 69 million dollars, Italy with 958 million dollars and Romania with 924 million dollars. In iron and steel exports from the Aegean Region, Germany was again at the top with a demand of 150 million dollars, followed by the United States with 89 million dollars and the United Kingdom with 75 million dollars.