Turkey increased steel production by 16.9% y/y in the first half of the year

In January-June 2024, Turkish steelmakers increased steel production by 16.9% compared to the same period in 2023, to 18.61 million tons. This is evidenced by data from WorldSteel.

In June, Turkey produced 3.07 million tons of steel, up 4.3% compared to June 2023 and 4.4% less than in June 2023. The average monthly steel production since the beginning of the year amounted to 3.1 million tons compared to 2.81 million tons a year earlier.

Pig iron production in the first half of the year reached 5.19 million tons, up 31.9% year-on-year. In June, this figure decreased by 0.3% y/y and 6.8% m/m – to 0.83 million tons. Average monthly pig iron production amounted to 0.87 million tons compared to 0.72 million tons in January-June last year.

The decline in iron and steel production over the month was driven by weak demand and the week-long holiday period, which prompted many plants to schedule maintenance. At the same time, producers are under pressure from weak domestic and export demand, import pressure, continued stability in scrap and rebar prices, and an unhealthy spread between hot-rolled coil and scrap prices.

In 2023, Turkey reduced steel production by 4% compared to 2022, to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million tons. The decline in steel production in the country in 2022-2023 is due to macroeconomic instability, which has led to high uncertainty in the domestic market.

There are 29 steelmaking plants in Turkey, including 3 blast furnace plants and 26 electric arc furnaces. Their annual steelmaking capacity is estimated at about 60 million tons. In other words, in 2023, capacity utilization was 58.5%.