News Global Market Türkiye 25 October 2022
As a result of the energy crisis in Europe, the production and supply of steel is reduced, which can positively affect imports from Turkiye
Turkish steelmakers expect an increase in demand for Turkish steel from European consumers already in 2023 due to the energy crisis in Europe. Daily News reports about it.
“There are risks but new opportunities may arise for Turkiye’s steel industry. The country is becoming a reliable supplier in energy-intensive sectors at a time when Europe is experiencing energy problems,” the message says.
Europe is likely to experience problems with steel production at the height of the energy crisis in winter. At this time, a significant increase in demand for imported products is expected.
“The global problems with the supply of raw materials have not yet been resolved. In addition, high prices for energy and goods as a result of the Russian-Ukrainian war led to a reduction in both production and supply,” said Fuat Tosyali, president of the Mediterranean Ferrous and Non-Ferrous Metals Exporters’ Association (ADMİB).
Global demand for steel has decreased over the past 3-4 years. At the same time, the drop in demand for Turkish products is at a normal level compared to competitors.
Europe is struggling with its green transformation due to the energy crisis, but the Green Deal still sets ambitious targets.
“We are taking early steps to comply with the changes the world is adopting for production processes. We want to reap the fruits of those steps in the period ahead. If we could properly manage the risks, which would emerge in 2023 and beyond, our steel industry could surpass its export targets,” Faut Tosiali added.
The share of the steel industry in Turkiye’s export revenues for January-September 2022 amounted to 16.7% or $28 billion.
As GMK Center reported earlier, Turkish steel companies reduced steel production by 21% compared to August 2021 – to 2.8 million tons. In January-August 2022, Turkiye produced 24.4 million tons of steel, which is 8.8% less than in the same period of 2021.
Steel exports from Turkiye decreased by 25% for the month compared to August 2021 – to 1.4 million tons, and for the first 8 months – by 12.4% y/y, to 11.1 million tons.
Turkiye ranks seventh in the world in terms of steel production. In 2021, Turkish enterprises increased production of steel by 12.7% compared to 2020 – up to 40 million tons. This is a record indicator.