Turkey increased steel production by 9.4% y/y in 2024

Turkish steelmakers increased steel production by 9.4% in 2024 compared to 2023, up to 36.89 million tons. This is evidenced by data from the Global Steel Association WorldSteel.

Pig iron production in the country increased by 17.2% y/y over the past year – to 10.19 million tons. The average monthly steel production amounted to 3.07 million tons compared to 2.81 million tons in 2023, and pig iron production was 848.8 thousand tons and 724.2 thousand tons, respectively.

In 2024, Turkey’s steel industry grew after 2 years of stagnation. This was facilitated by the active development of infrastructure projects, including the recovery of regions after the earthquake, export growth in the face of changes in global markets, and the modernization of metallurgical facilities. Despite the positive dynamics, global challenges, such as volatile demand and competition from Asian producers, remain relevant. Growth is expected to continue in 2025, driven by public investment, expanding markets in the region, and the integration of green technologies, although the risks of lower commodity prices and geopolitical instability remain.

In December 2024, Turkish metallurgists produced 2.98 million tons of steel, down 1.1% month-on-month and 7.6% y/y, the lowest since April 2024. Pig iron production fell by 8.6% m/m and 15.1% y/y to its lowest level since September 2023. The main reasons for this were the seasonal decline in construction activity, the oversupply of steel on the international market, and the slowdown in China’s economy, which affected global demand.

WorldSteel recently downgraded its short-term forecast for global steel demand in 2024 to -0.9% y/y (1.75 billion tons). In particular, in Turkey, the figure will decrease by 5.5% compared to 2023, to 36 million tons. In 2025, the trend will continue, but the rate of decline will slow to 1.7% y/y (35.5 million tons).

As a reminder, 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.