Genel

Turkish Steel Sector

Turkish steel production showed third yearly drop in 2015.  On the other hand, global steel production fell for the first time in 2015 after the sharp drop during the global financial crisis in 2009. According to the World Steel Association’s data, in 2015 world crude steel production fell 2.8 % from 1.67 billion tons to

Crude Steel Production

Between 2007-2012, among 10 biggest steel producing countries Turkey was the third country to achieve the highest production growth after China and India. However, between 2012-2015 Turkey’s production fell by 12.2 %. After declining for three consecutive years Turkey’s crude steel output bottomed 31.5 mt in 2015, however, in 2016 production increased to 33.2 mt,

Capacity and Capacity Utilization Ratio

In 2016 Turkey’s crude steel production capacity increased from 50.4 mt to 51.5 mt, up by 2.1 %. Electric arc and induction furnace mills’ share of total production capacity reached 75 %. Supported by 5.2 % crude steel output increase, capacity utilization ratio increased from 62.5 % to 64.4 % in 2016. According to World

Finished Steel Production and Consumption

In 2016 Turkey’s crude steel output grew by % 5.2. However, as the widening of scrap/iron ore spread stopped, consumption of imported semi finished products has shown declining tendency and total finished steel output declined by 0.2 % from 36.94 mt to 36.88 mt. Long steel output dropped to 26.01 mt, down by 2 %,

Export

In 2016 Turkey’s total iron & steel products export including pipes and articles of iron & steel increased by 1.2 % from 16.73 mt to 16.93 mt; while the value of the total export declined by 8 % from 11.74 billion dollars to 10.80 billion dollars, as a result of  the drop in average price.

Import

After rising sharply by 38.1 % in 2015 to 19.06 mt in 2016, Turkey’s total steel import, fell by 8 % to 17.54; while the value of import decreased by 11.5 % to 10.9 billion dollars.  Having reached an historic high in 2015 up by 65 % to 7.89 mt Turkey’s semi-finished import declined by

Steel Trade Balance

Steel products accounted for 7.6 % of total export of the Turkish economy with 10.8 billion dollars in terms of value.  Turkey’s steel products export/import ratio increased from 95 % to 99 %. As a result, Turkey, after becoming a net steel importer despite having more than 19 mt idle capacity in 2015, continued its

Raw Materials

In 2016, total crude steel production grew by 5.2 % and production in electric arc furnace mills increased by 6.7 %, As a result, total scrap consumption of steel sector increased from 24.06 mt to 25.88 mt, up by 7.6 %. While 17.7 million tons of scrap was met though import, up by 9 %,

Economy & Expectations

The growth trend seen in the first half of the year slowed down in the second half due to political and geographical instability. The growth of industrial production was 1.9 % in 2016. Industrial production, which grew by 4.3 % in the first half of the year, slowed down considerably in the second half. While

Forecasts

Turkish steel industry started 2016 by struggling to survive under the problems accumulated since 2012. The fast recovery in steel prices during the first quarter of 2016, revived the expectations of the industry for the remaining part of the year. However, the realization of the positive expectations depend on eliminating surplus capacity and its negative