Turkey increased steel production by 13.8% y/y in August

In August 2024, steel enterprises of Turkey increased steel production by 13.8% compared to the same period in 2023 – to 3.15 million tons. Compared to the previous month, the indicator increased by 3%. This is evidenced by the data of the Global Association of Steel Producers WorldSteel.

During January-August, the volume of steel production reached 24.82 million tons, which is 14.8% more compared to the same period in 2023. Average monthly production increased by 10.4% y/y – up to 2.81 million tons.

Pig iron production in Turkey increased by 17.9% y/y in August – to 884.1 thousand tons, and in 8 months – by 28% y/y, to 6.94 million tons. The average monthly output of pig iron in 2024 amounted to 870 thousand tons (+19.7% y/y).

August steel production by Turkish steelmakers is the fourth-largest volume in the current year. The indicator came as a surprise to market participants, as it was expected that part of the capacities would go out for maintenance during the month, or would be reduced amid seasonally weak demand. The increase is due to the improvement in export demand from the EU.

As GMK Center reported earlier, in 2023 Turkey reduced production of steel by 4% compared to 2022 – to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million tons. Reduction of steel production in the country in 2022-2023 is associated with macroeconomic instability, which led to high uncertainty in the domestic market.

There are 29 steel enterprises located in Turkey, in particular, 3 – blast furnace type, and 26 – electric arc type. Their annual capacity for steel production is estimated at about 60 million tons. That is, in 2023, capacity utilization was at the level of 58.5%.