Turkiye’s steel sector will recover in the coming months

The level of capacity utilization in the industry in January-March 2023 fell to 53%

Turkish steel industry does not have a stable growth trajectory, but recovery in the steel sector is expected in the coming months. Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TCUD), announced this at a professional conference, informs SteelOrbis.

In 2022, Turkish steelmakers reduced steel production by 12.9% y/y due to the invasion of the Russian Federation in Ukraine and the energy crisis. In the first three months of 2023, steel production in the country fell by 21.5%. According to Veysel Yayan, the steel sector should recover in the coming months. With the resumption of production at the Isdemir steel plant, an increase in the volume of steel smelting is expected in April 2023. Production figures for the second half of the year will improve due to the commissioning of Tosyalı’s new plant in Sariseki.

Capacity utilization in Turkiye’s steel industry fell to 53% in January-March 2023, compared to 70% in the first three months of 2022, a TCUD representative noted. The country’s steelmakers face not only protective measures from the EU and the USA, but also a reduction in world demand for steel. According to Veysel Yayan’s forecast, market prospects will deteriorate from July 2023.

In the first two months of 2023, the share of imported flat products in the country’s total consumption increased to 51.2%. As the representative of TCUD noted, the first place among the countries from which Turkiye imports rolled steel is the Russian Federation, followed by China and South Korea, Japan, Indonesia and Taiwan. However, trade is one-way – Turkiye cannot export to these markets. In January-February 2023, the ratio of steel exports and imports of the country fell to 55.3% compared to 80.1% in the same period of 2022.

As GMK Center reported earlier, the steel enterprises of Turkiye in March 2023 increased production of steel by 28.9% compared to February 2023 – up to 2.713 million tons. Compared to March 2022, Turkish steelmakers reduced steel production by 18.6% in March 2023.

Also, Turkish Isdemir announced that it reached production levels that were before the earthquake that occurred in February 2023. Production was resumed in a gradual and controlled manner. Insurance examinations and damage assessment studies are ongoing at the company’s facilities.