Turkiye increased steel production by 25% y/y in January

In January 2024, Turkish steelmakers increased steel production by 24.6% compared to the same month in 2023, to 3.25 million tons. The country was ranked 7th in the global ranking of steel producing countries (71) by the World Steel Association.

In January 2024, steel production in Turkiye increased by 0.7% compared to December 2023. Thus, the figure rose to its highest level since April 2022.

In 2023, Turkiye 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 Turkiye in 2022-2023 is due to macroeconomic instability, which has led to high uncertainty in the domestic market.

In 2023, steel exports from the country decreased by 30.6% y/y – to 10.5 million tons. Export revenue decreased by 40.7% y/y – to $8.3 billion. In 2022, steel exports from Turkiye decreased by 23.5% y/y – to 15.1 million tons.

Analysts expect an improvement in the Turkish steel market this year, driven by global growth in steel demand, lower interest rates globally, etc. In its report for October 2023, the Worldsteel Association forecasts a 5% increase in steel consumption in Turkey in 2024 to 40.6 million tons.

TCUD predicts that domestic steel demand will grow in 2024, supported by investments and new capacity launched in the second half of 2023. In general, Turkish producers Kardemir, Yıldız, Colakoglu Metalurji, Hasçelik have planned multimillion-dollar investments in new production facilities for 2024 and beyond. Due to difficulties with exports, Turkish companies want to increase production of higher value-added products for domestic needs.