Turkey strengthens its position in the Ukrainian steel market

Over the past three years, Turkish steel companies have significantly increased their presence in the Ukrainian rolled steel market. The share of Turkish steel products in Ukraine’s total imports of rolled steel increased from 19% to more than 50%, and the volume more than doubled.

Imports increased sharply in 2023. While in 2022, supplies of Turkish-made rolled steel to the Ukrainian market decreased by 14% compared to 2021, to 179.46 thousand tons, in 2023 this figure reached 456 thousand tons (+154.1% y/y).

This year, the growth trend continues. In January-August 2024 alone, imports of rolled products from Turkey reached 408.3 thousand tons (+56.1% y/y), and by the end of the year, volumes are likely to exceed 600 thousand tons.

Flat products accounted for the bulk of imports in January-August, amounting to 336.8 thousand tons (+69.8% y/y). At the same time, shipments of long products amounted to 71.5 thousand tons (+13.2% y/y). In 2023, shipments of flat products amounted to 358.03 thousand tons (2.9 times y/y), and long products – 98.03 thousand tons (+75.2% y/y), in 2022 – 123.5 thousand tons (+23.8% y/y), and 55.96 thousand tons (-48.6% y–y), respectively.

The key types of products shipped by Turkish steel companies to the Ukrainian market in January-August 2024 include:

• flat hot-rolled sheet – 163.68 thousand tons (+90% y/y);
• coated flat rolled steel – 126.28 thousand tons (+74.4% y/y);
• corners, shaped and special profiles – 40.08 thousand tons (+48.2% y/y);
• flat cold-rolled sheet – 35.79 thousand tons (+21.5% y/y);
• rebar – 20.34 thousand tons (-36% y/y).

Before Russia’s full-scale invasion, Turkish steelmakers had been supplying the Ukrainian market with mostly long products and coated flat products. The diversification of supplies is the result of the loss of Mariupol-based steel mills that specialized in flat and coated steel products.

Overall, in January-August 2024, Ukraine imported 781.06 thousand tons of rolled steel, including 664.3 thousand tons of flat products and 116.8 thousand tons of long products. In 2023, this volume amounted to 1.08 million tons, in 2022 – 603.16 thousand tons, and in 2021 – 1.1 million tons.

According to SteelRadar, Ukraine was among the five largest destinations for steel exports from Turkey in January-August 2024. Italy ranks first with 794.2 thousand tons, Romania is second (766.3 thousand tons), Yemen is third (482.31 thousand tons), Ukraine is fourth, and Spain is fifth (401.9 thousand tons). In total, Turkey exported 8.86 million tons of rolled steel over 8 months, up 38.3% y/y.

As GMK Center reported earlier, in January-August 2024, Ukraine reduced consumption of steel products (rolled products and semi-finished products) by 1.5% year-on-year – to 2.298 million tons. Domestic steelmakers produced 4.32 million tons of rolled products, imports reached 833.1 thousand tons, up 5.8% y/y, and 2.85 million tons were shipped for export, up 59.4% y/y.