Turkiye increased steel production by 7.5% m/m in May

During the month, Turkish steelmakers produced 2.88 million tons of steel

In May 2023, steel enterprises of Turkiye increased steel production by 7.5% compared to April 2023 – up to 2.879 million tons. This is evidenced by data, published on the website of the World Steel Association.

Compared to May 2022, Turkish steelmakers reduced steel production by 10.4% in May 2023.

In January-May 2023, steel companies of Turkiye produced 12.98 million tons of steel, which is 19.1% less than in the same period of 2022.

Turkish oil pipeline corporation BOTAŞ kept industrial natural gas prices unchanged for the second month in a row, although local steelmakers had expected the cost of energy resources to continue to decline after price cuts since the beginning of the year. The decrease in prices somewhat eases the situation of Turkish steel producers, whose competitiveness is still low in export markets.

From April 1, 2023 BOTAŞ reduced wholesale prices on natural gas for large industrial enterprises by 20.01% compared to March. This was 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.

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 down 16% at the end of 2022.

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