Turkish Steel Producers Association press release was published. Turkey's crude steel production decreased by 10.3 percent to 2.9 million in May compared to the same month of the previous year. The data was published as follows;
STEEL PRODUCTION DECREASED CONSUMPTION INCREASED
In May 2023, Turkey's crude steel production decreased by 10.3% yoy to 2.9 million tons.
In the January-May period, production decreased by 19.1% to 13 million tons.
Final product consumption increased by 2.6% yoy to 4 million tons in May and by 13.7% yoy to 16.5 million tons in January-May period compared to the same month of 2022.
EXPORTS DECREASED AND IMPORTS INCREASED IN FOREIGN TRADE
In May, exports of steel products decreased by 36.1% to 778.7 thousand tons in quantity and 47.4% to 684.1 million dollars in value.
In the January-May period, compared to the same period of 2022, exports decreased by 47.7% to 3.6 million tons in quantity and 52.6% to 3.1 billion dollars in value.
In May 2023, imports increased by 85.6% to 2.1 million tons in quantity and by 37% to 1.8 billion dollars in value compared to the same month of 2022.
In January-May period, compared to the same period of 2022, imports increased by 25.2% in quantity to 8 million tons and decreased by 3.2% in value to 6.8 billion USD.
Foreign Trade Balance Decreased by 46.5% in the first 5 months of 2023
The ratio of exports to imports, which was 95% in the first 5 months of 2022, declined to 46.5% in the first 5 months of 2023.
World Steel Production fell by 5.1%
According to data released by the World Steel Association (worldsteel) for May 2023, world crude steel production decreased by 5.1% to 161.6 million tons compared to the same month of the previous year and by 1.2% to 786 million tons in the first 5 months of the year.
In the first 5 months of the year, China's crude steel production increased by 1.6% compared to the same period of 2022 and reached 444.6 million tons, while second-ranked India's crude steel production increased by 5.7% to 56.4 million tons and Japan's production decreased by 5.3% to 36.5 million tons.
TÇÜD ASSOCIATION EVALUATED ALL THE DATA AND DEVELOPMENTS IN THE SECTOR AS FOLLOWS
Although the downward trend in the crude steel production of our sector, whose competitiveness weakened largely due to energy costs, which was observed in the January-April period with the effect of the earthquake, lost momentum with a 10.4% decrease in May, the 19.1% contraction in the first 5 months of the year clearly revealed the negative trend in the sector.
Although the consumption increased by 13.7% in the January-May period due to the increase in demand in the domestic market within the scope of the activities for the reconstruction of the earthquake zone, the 25% increase in imports of steel products caused serious disturbance as it showed that the increase in domestic demand was met entirely through imports.
In particular, the increase in imports of flat products, hot rolled sheet and wire rod reached extraordinary levels. In May, imports of flat products increased by 50% in quantity, while imports of hot rolled steel and wire rod increased by 41.6% and 121.4%, respectively.
In the January-May period, imports increased by 25.2% against a 47.7% decrease in total exports of steel products, leading to a widening of the deficit in steel foreign trade, and the ratio of exports to imports dropped to 46.5% from 95% in the first 5 months of 2022.
In a conjuncture of increasing protectionist measures, preventing the increase in imports in order to close the deficit in our steel foreign trade is among the priority problems not only of our steel industry but also of our economy. On the other hand, in order to direct the increase in domestic demand to domestic supply, it is vital to review the Inward Processing Regime and to take counter measures against protectionist practices against our country despite the Free Trade Agreements between us.
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