The share of imports in Turkey’s consumption reaches 48%

Turkish steel producers expect to achieve production of about 39 million tonnes in 2021 if the current growth trend continues, surpassing the record production of 37.5 million tonnes recorded in 2017.

“While the first half of 2021 was a period of growth due to base effect, manufacturing saw an increase of about 45%, especially in April and May. The disappearance of the base effect after June had an impact on steel production in July. Despite this, with a 2.5% increase in production in July, our country rose again to seventh place in the world ranking, overtaking Germany, ”says Veysel Yayan, Secretary General of the Turkish Steel Association (TCUD).

Turkey’s crude steel production increased 2.5% in July to 3.2 million tonnes, and production in seven months reached 22.3 million tonnes, up 17.7 percent from a year earlier, according to TCUD data.

Consumption of finished steel in July rose by 4.9% to 2.8 million tonnes. Consumption in January-July increased by 25.3% to 20.2 million tons.

Exports of flat and long products in July increased by 10.6% to 1.6 million tons, and in value terms – by 98.1% to $ 1.4 billion. In January-July, exports increased by 15.9% to 10.8 million tons and by 69.5% to $ 8 billion.

Imports in July rose by 15.9% to 1.4 million tons. In value terms, they rose by 113% to $ 1.3 billion. In January-July, imports increased by 32.2% to 9.6 million tons and by 85% to $ 7.9 billion.

The ratio of exports to imports in January-July fell to 100.8: 100 against 110: 100 last year due to an increase in imports.

Due to an increase in imports of Turkish steel in July by 15.9%, the share of imports in consumption rose to 48%, which is 6 percentage points more than in 2020.

“At a time when Turkish steelmakers face severe export restrictions due to extensive safeguards in global markets, the fact that the share of imports in domestic consumption has reached an extraordinary level of 48% has damaged not only our industry, but also our economy, ”says Yayan.

Yayan notes that approximately 2.5 million tonnes of the 3.2 million tonnes of hot rolled coil were imported from Russia, Ukraine, India and China in the first seven months of the year.

Turkey’s imports from Russia increased 89.6% to 1.3 million tons, imports from Ukraine increased 108% to 675,000 tons, and imports from India reached 315,000 tons, an increase of 5,000%. In addition, imports from China and Japan increased sharply.

“The $ 2.2 billion in imports from these countries under the inward processing regime are destroying our steel industry, given that we have almost no steel product exports [to these countries],” adds Yayang.

“Considering that the production capacity of the flat-rolled steel manufacturer MMK is 2 million tonnes, and the capacities of our other manufacturers will be put into operation from 2022, it is extremely important to take the necessary measures to restrict imports of hot-rolled steel within – without further delay – primarily from Russia , Ukraine and India under the internal processing regime, ”concludes Yayan.

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