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- October 13, 202617°
- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.60-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,772+0.02%
- October 13, 202617°
Crude steel production rises 8.1% to 19.8 million tons in first half
Turkey's crude steel output reached 19.8 million tons in the first half, rising 8.1%. Robust demand from Middle Eastern and South American markets spurred exports, while the EU market continued to contract.
According to data from the Turkish Steel Producers' Association (TÇÜD), crude steel production in June rose by 14.7% compared to the same month last year, reaching 3.3 million tons.
In the January-June period, production increased by 8.1% to 19.8 million tons.
Final Consumption and Export Data
Final product consumption in June rose 0.4% year-on-year to 3.1 million tons, and in the first half it climbed 6.6% to 19.9 million tons.
Exports of steel products in June increased by 28.4% in volume to 1.7 million tons and by 29.7% in value to $1.2 billion. In the January-June period, export volume rose 2.5% to 7.8 million tons, while value increased 1.3% to $5.3 billion.
Imports Decline While Coverage Ratio Rises
Imports in June fell 0.8% in volume to 1.8 million tons, but rose 3.7% in value to $1.2 billion. In the first half, import volume inched up 0.3% to 9.3 million tons, while value dropped 2.4% to $6.3 billion.
The export-import coverage ratio stood at 80% in the same period last year, rising to 83% this year.
Middle East and South America Boom
TÇÜD Secretary General Veysel Yayan stated that Turkey maintained its position as the 7th largest crude steel producer in the world, ahead of Germany. Emphasizing that the decline in the first five months was reversed by the strong performance in June, Yayan said that demand from Middle Eastern and South American markets in particular drove the recovery.
In June, exports to the Middle East surged 80% to 212,600 tons, while exports to South America skyrocketed 406% to 182,500 tons. In the first six months, exports to the UK jumped 246% to 407,000 tons, and exports to South America rose 81% to 643,000 tons.
Contraction in EU Market Continues
Yayan noted that the weak trend in the European Union market persisted, with exports of steel products to the EU falling 22% to 2.6 million tons in the period. He highlighted that the EU was the only region where exports declined.
Eximbank and Trade Policy Warning
Sharing his expectations for the upcoming period, Veysel Yayan noted that the Turkish steel sector needs long-term and affordable financing models to transform its current production capacity into a high value-added, technology-driven and sustainable structure.
Strengthening Eximbank support and facilitating access to investment loans are important. Given Turkey's crude steel production capacity of approximately 62 million tons, the steady increase in domestic consumption and the sector's export potential, it is vital to implement effective trade policy measures more decisively against the surge in imports that causes unfair competition.
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