Turkiye becomes a net importer of steel for the first time since 2015 – CIB

Turkey will become a net importer of steel products this year amid difficult market conditions. This was stated by the Turkish Association of Steel Exporters (CIB), SteelOrbis reports.

In January-November 2023, steel exports from Turkiye decreased by 28.8% y/y – to 13.05 million tons, its value fell by 31.2% y/y – to $13.54 billion. At the same time, steel imports to the country increased by 14.8% y/y – to 17.64 million tons in the first 11 months of 2023. According to CIB Chairman Adnan Aslan, Turkiye has become a net importer of rolled products, especially wire rod, for the first time since 2015.

Adnan Aslan noted that the decline in exports was due to a number of reasons, including the application of protective measures. In addition, North African countries, such as Egypt and Algeria, to which Turkiye supplies steel, have become net exporters, and the Far East countries have returned to the market with lower freight and container prices,

The CIB Chairman reminded that other countries are implementing policies to protect their steel industry, while Turkiye is still an open market.

According to the industry association, Turkiye’s steel exports will reach 14 million tons in 2023 (previously expected to be 16 million tons). For comparison, in 2022, this figure exceeded 20 million tons. In 2024, Turkish steelmakers are aiming to reach export volumes of 15 million tons.

According to Aslan, the country’s steelmaking capacity is currently 50-55% utilized due to lack of demand and rising energy costs. The CIB chairman also said that the industry association has applied for an investigation into the possibility of import subsidies.

Ugur Dalbeler, CIB Vice President, noted that monetary policy has led to a contraction in Turkey’s main markets. At the same time, despite the increase in flat-rolled steel production capacity in the country and the corresponding duties, foreign steel suppliers offer low prices, so the Turkish steel industry is forced to cut production. In addition, it is difficult to plan new investments.

As GMK Center reported earlier, in October 2023, Turkiye increased steel production to its highest level since June 2022, up to 2.965 million tons. In January-October, the country’s steel production amounted to 27.45 million tons, down 8.8% compared to the same period in 2022.