The sharp contraction of steel production and exports continues

The Turkish Association of Steel Producers (TÇÜD) has announced data on steel production, consumption and foreign trade for October.

Accordingly, Turkey’s crude steel production in October decreased by 17.8 percent compared to the same month a year earlier and decreased to 2.9 million tons. Crude steel production decreased 10.1 percent in the 10 months of the year to 30.2 million tons.

While finished steel consumption reached 2.8 million tons with an annual increase of 11.5 percent in October, it declined 2.5 percent to 27.1 million tons in the January-October period.

HARDER RECRUITMENT IN EXPORTS

In October, exports of steel products were registered at 1.1 million tons with a decrease of 42.3 percent annually in terms of quantity and at $853.5 million with a decrease of 51.3 percent in terms of quantity. of value.

In the January-October period, compared to the same period of the previous year, the exported amount of the product decreased by 18 percent to 13.6 million tons, and the value decreased by 6.5 percent to $12.6 billion. .

THE PARTICIPATION OF IMPORTS IN CONSUMPTION INCREASES

In October, imports of steel products amounted to 1.2 million tons with an increase of 11.6 percent in quantity, and to 1.1 billion dollars with a decrease of 9.9 percent in value compared to the same month of the previous year. . In the 10 months of this year, imports were estimated at 12.5 million tons with a decrease of 3.6 percent in quantity and 13.5 billion dollars with an increase of 14.8 percent in value compared to the same period last year. last year.

While the share of imports in the consumption of steel products was 31.4 percent, the share of imports in the consumption of flat products reached 51 percent. The ratio of exports to imports, which was 114.5 percent in the period January-October last year, fell to 93.3 percent in the same period this year.

25 PERCENT DECLINE IN STEEL EXPORTS TO THE EU

According to the assessment made in the statement, steel consumption decreased in the European Union (EU) market, which was in recession due to the effects of the Russia-Ukraine War. However, exports of steel products to the EU, which is the biggest market for the steel industry, fell 25 percent in October.

In the statement, it was stated that the Gulf countries, which are in a more advantageous position compared to Turkey in terms of energy costs, turned to the Southeast Asian market with such a decline, and it was emphasized that the 78 percent decline percent observed in the market led to a contraction of 18 percent in exports of steel products from Turkey in the 10 months of the year.

In the statement, it was emphasized that the drop in exports by 42.3 percent in terms of quantity and 51.3 percent in terms of value clearly revealed the competitiveness of high-tariff energy hikes and the devastating effect on the foreign trade deficit.

‘RISE ON INCREASE IN PRODUCTS OF INDIAN ORIGIN’

In the statement, which reported that the increase in imports from Russia, India and China continued while production and exports declined, the following was noted: “Following the removal of the steel export tax by India, one of the largest producers in the world, there will be a significant increase in the entry of products of Indian origin to the Turkish market at cheaper prices and it is considered that India, one of Turkey’s largest competitors in the flat steel markets, may take advantage of the weakening of our competitive power and head towards these markets”.

In the pronouncement made, it is evaluated that, based on the measures to increase the consumption of steel in the manufacturing industry, especially projects related to the housing sector, the reduction of energy prices to reasonable levels, the prevention of imports of poor quality and dumped products, it is considered that a recovery process can be started in adverse conditions from the first quarter of 2023. took. (AA)