Turkiye reduced steel production by 22.4% m/m in November 2022

In January-November 2022, Turkish steelmakers reduced steel production by 12.3%

In November 2022, Turkish steel enterprises reduced steel production by 22.4% compared to October of this year – to 2.26 million tons. This is evidenced by data, published on the World Steel Association website.

Compared to November 2021, Turkish steelmakers in November 2022 reduced steel production by 34.3%.

In January-November 2022, Turkish steelmakers produced 32.47 million tons of steel, which is 12.3% less compared to the same period in 2021.

Since September 2022, Turkiye raised prices for electricity and gas for the industry by 50%. The regulatory agency linked the rise in electricity prices to the rise in energy prices, especially under the influence of the war in Ukraine.

According to Veysel Yayan, CEO of the Turkish Steel Producers Association (TCUD), the share of energy costs in Turkish steel sector has increased to 28-30% of the total costs in steel production against the background of the increase in the cost of gas and electricity.

Turkish steel industry’s capacity utilization rate has fallen from 75% to less than 60% as producers cut shifts or shut down operations.

TCUD Association expect reduction of steel production in Turkiye this year by 10%, and the country’s factories are considering the possibility of stopping production due to high energy costs.

Turkiye is the seventh largest steel producer in the world. In 2021, Turkish steel plants increased steel production by 12.7% compared to 2020, to 40 million tons. This is a record result.