Press Release May 2025

STEEL PRODUCTION

In May 2025, Turkey's crude steel production decreased by 2.8% compared to the same month last year, falling to 3.1 million tons. In the January-May period, production decreased by 1.4%, reaching 15.4 million tons.

STEEL CONSUMPTION

Final product consumption in May 2025 increased by 1.1% compared to the same month in 2024, reaching 3.4 million tons. In the first five months of the year, final product consumption decreased by 4.7%, falling to 15.5 million tons.

FOREIGN TRADE

Export

In May 2025, steel product exports increased by 21.1% in quantity, reaching 1.4 million tons, and by 9.2% in value, reaching 922.8 million dollars compared to the same month in 2024. In the January-May period, steel product exports increased by 18% in quantity, reaching 6.3 million tons, and by 7.9% in value, reaching 4.3 billion dollars compared to the same period in 2024.

Import

In May 2025, steel product imports increased by 24.6% in quantity, reaching 1.9 million tons, and decreased by 0.1% in value, reaching 1.3 billion dollars compared to the same month in 2024. In the January-May period, steel product imports increased by 6% in quantity, reaching 7.5 million tons, and decreased by 5.1% in value, reaching 5.3 billion dollars compared to the same period in 2024.

Foreign Trade Balance

In the January-May period of 2024, the export-to-import ratio was 71%, which increased to 80.7% in the same period of 2025.

WORLD STEEL PRODUCTION

According to the data announced by the World Steel Association (worldsteel) for May 2025, global crude steel production decreased by 3.8% compared to the same month last year, reaching 158.8 million tons, and in the January-May period, it decreased by 1.3% compared to the previous period, reaching 784 million tons. In the January-May period, China's crude steel production decreased by 1.7% compared to the same period last year, reaching 431.6 million tons. India's crude steel production, which ranks second, increased by 8.2%, reaching 67.2 million tons, while Japan's production decreased by 5.2%, falling to 33.8 million tons.

ASSESSMENT

In May 2025, Turkey showed a lower contraction compared to the global steel sector, with a contraction rate of 1.4% in the January-May period, showing a deviation of 0.1%, remaining at the same levels. Despite the decline in production, the Turkish steel sector maintained its position as the largest steel producer in Europe and the seventh largest in the world. It continued to close the gap with South Korea, which is just above us, even with modest steps.

Turkey achieved this development mainly thanks to the increase in exports. In the January-May period, final product consumption remained at 15.5 million tons with a decrease of 4.7%, while imports increased by 6%, reaching 7.5 million tons. The increase in imports was mainly due to China and Russia, which focused on international markets, especially the Turkish market, as their consumption contracted. Other Far Eastern countries also played a significant role in the increase.

Although the Trump administration is taking positive steps towards resolving tariff issues, especially with China, it is assessed that Turkey will continue to be the target of countries with a surplus in steel production until the issues are resolved.

This situation, which is also valid for many other sectors, especially the automotive, machinery, and white goods sectors, threatens the Turkish economy. The record increases achieved in exports are overshadowed by the increases in imports. In our steel sector, where the high capacity cannot be utilized due to imports made at dumped prices, it is of vital importance to control imports as soon as possible, and for this purpose, to rapidly review the Inward Processing Regime and Free Trade Agreements.

On the other hand, sector-specific practices continued to impose additional burdens on producers. Regulations such as the Construction Steel Monitoring System and VAT withholding negatively affect financial liquidity and the operational flexibility of businesses. While countries like the USA, EU, India, and Mexico take various protective measures against such initiatives, the fact that Turkey does not implement similar mechanisms further deepens the imbalance in the sector.

Structural problems that will occur in the steel sector will inevitably directly affect all other branches of the industry. It is assessed that the strategic and structural steps to be taken today will determine not only the sector's but also the country's overall competitive power. In this context, it is important to take measures against dumped imports and to revive export markets by updating the Customs Union and Free Trade Agreements.