Turkiye reduced steel exports by 53% y/y in March

In the first quarter, Turkish steelmakers reduced the shipment of products for export by 48.3%

In March 2023, steel companies of Turkiye reduced their steel exports by 52.8% compared to the same month in 2022 – to 810.6 thousand tons. This is reported by SteelOrbis with the reference to the Turkish Steel Producers Association (TCUD).

The revenue of Turkish steelmakers from the export of steel for the month decreased by 54.3% until March 2022 – to $725.1 million.

In the first quarter, shipments of Turkish steel abroad decreased by 48.3% compared to the same period in 2022 – to 2.2 million tons. The value of exports was $1.9 billion, which is 51.5% less year-on-year.

At the same time, steel imports to Turkiye increased by 42.9% y/y in March of this year – up to 1.7 million tons. In the first quarter, 4.1 million tons of steel were shipped to Turkish consumers from abroad, which is 5.9% more than in the same period of 2022.

Imports of flat products to the country increased by 32.2% in the first quarter, as Russia and Far Eastern countries, which export products at dumped prices, focused on the Turkish market, taking advantage of the delay in the introduction of import duties. This led to an increase in the foreign trade deficit of the Turkish steel industry and a decrease in the ratio of exports to imports.

According to TCUD forecasts, in May 2023, the Turkish steel industry will regain its competitiveness in export markets thanks to the reduction of gas and electricity prices. Full stabilization of production and exports is expected in June.

As GMK Center reported earlier, in March 2023, Turkiye increased its steel production by 28.9% compared to February 2023 – up to 2.713 million tons. In January-March 2023, Turkish steel companies produced 7.422 million tons of steel, which is 21.5% less compared to the same period in 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%

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

Also, 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.