Turkiye in September 2022 reduced steel production by 19% y/y

According to the Turkish Association of Steel Producers (TCUD), in September 2022, steel production in the country decreased by 19% y/y – to 2.7 million tons. In January-September, it fell by 9.3% compared to the same period of 2021 – to 27.3 million tons. SteelOrbis reports about it.

The consumption of rolled steel in the country for 9 months of 2022 decreased by 5.2% y/y – to 24.1 million tons, in September it fell by 3.2%, to 2.1 million tons, compared to the same period last year.

Steel exports in September decreased by 31.2% – to 1.4 million tons compared to the same period of 2021. In 9 months of 2022, it fell by 15% y/y – to 12.5 million tons. Imports in January-September decreased by 5% year-on-year – to 11.3 million tons.

In 9 months, Turkiye’s export-to-import ratio was 94.5%, compared to 110% in the same period of 2021.

As TCUD noted, the share of electricity and natural gas in industry costs increased from 8% to 30%. This led to a significant decrease in the competitiveness of the Turkish steel industry on the domestic and foreign markets and a reduction in production, which affected export performance.

The level of capacity utilization, according to the association, has decreased to 60%, production reduction may be observed in the fourth quarter of 2022. According to the association, multifaceted steps are needed to stop the negative trends in the country’s steel sector.

As GMK Center reported earlier, TCUD expects reduction of steel output in Turkiye in 2022 by 10%, and the country’s factories are considering the possibility of stopping production due to high energy costs.