Steel industry

During the month, Turkish steelmakers produced 2.71 million tons of steel

In March 2023, steel enterprises of Turkiye increased steel production by 28.9% compared to February 2023 – up to 2.713 million tons. This is evidenced by data, published on the website of the World Steel Association.

Compared to March 2022, Turkish steelmakers reduced steel production by 18.6% in March 2023.

In January-March 2023, steel companies of Turkiye produced 7.422 million tons of steel, which is 21.5% less than in the same period of 2022.

From April 1, 2023, the Turkish Oil Pipeline Corporation BOTAŞ reduced wholesale prices on natural gas for large industrial enterprises by another 20.01% compared to March. This is the third consecutive decrease in gas prices in the country in 2023. In February, gas for industry became cheaper by 13-17%, and in March – by 21-26%

Compared to October 2022, when gas prices in Turkiye reached peak values, the wholesale price of gas for industry as of April 2023 has decreased by 52.43-63.63%, and for electricity producers – by 51.52%.

After the last price adjustment, Turkiye has the lowest price for natural gas among European countries.

Lower prices have somewhat eased the situation for Turkish steelmakers, whose competitiveness has been low due to high energy costs, but weak demand for steel continues to hold back production.

In addition, according to the President of Turkiye, Recep Erdogan, from April 1, 2023, prices for electricity for all consumers decreased by another 15% after 16% down at the end of 2022.

As GMK Center reported earlier, Turkiye ranks eighth in the world in terms of steel production. According to the results of 2022, Turkish enterprises reduced production of steel by 12.9% compared to 2021 – to 35.1 million tons.