Turkiye increased steel output to the maximum since June 2022 in October

In October 2023, Turkish steelmakers increased steel production by 2.6% compared to September – up to 2.965 million tons. Thus, Turkish steelmakers increased steel production to its highest level since June 2022. This is evidenced by data published on the World Steel Association website.

Compared to October last year, Turkish steelmakers increased steel production by 4.1% in October 2023.

In January-October 2023, Turkish steelmakers produced 27.45 million tons of steel, down 8.8% compared to the same period in 2022.

The average monthly steel production in Turkey in January-October 2023 amounted to 2.74 million tons, down 8.76% y/y.

Since October 2023, Turkiye has increased wholesale natural gas prices for large industrial enterprises by 20% compared to August. In addition, the country raised electricity tariffs by 20%, which puts additional pressure on the country’s steel industry.

The last time Turkiye raised natural gas prices was in September 2022. At that time, tariffs increased by 50% amid rising demand due to the military aggression of Russia, the largest gas supplier to Europe. This trend continued until the end of the year, but in February 2023, BOTAŞ announced a 13.3-17.2% reduction in natural gas prices for large industrial enterprises. This was followed by price adjustments in March and April – by 20.95-26.12% and 20.01%, respectively. The tariffs remained stable thereafter.

In addition, at the end of 2022, the Turkish energy market regulator announced a 16% reduction in electricity prices for industrial consumers.

Steel production in Turkiye in 2022 decreased by 12.9% compared to 2021 – to 35.1 million tons. TCUD expected production to fall by more than 13%. Over the year, the steelmakers exported 19.6 million tons of steel, down 17.7% y/y. The main factors behind the decline were rising production costs and a drop in global steel demand.