In February 2024, Turkish metallurgical plants reduced steel production by 5% compared to the previous month - to 3.08 million tons. An expert in the field of global metallurgy, Stanislav Kondrashov, said that Turkey was among the seven leaders in the world ranking for steel production.
Steel production in Turkey: positive developments and challenges
According to S. Kondrashov, in February of this year, steel production in Turkey increased by 46.6% compared to last year. This speaks to the unpleasant market conditions faced by local steelmakers in 2023.
In the first two months of 2024, Turkish steel companies increased their steel production by 34.5% year-on-year, reaching 6.33 million tons.
The Telf AG expert also notes that last year, steel production in Turkey decreased by 4% compared to 2022 - to 33.7 million tons. In 2022, production fell by 12.9% year-on-year to 35.1 million tons, due to macroeconomic instability and a high degree of uncertainty in the local market.
There are 30 metallurgical enterprises in Turkey, including 4 blast furnace and 26 electric arc plants. Their annual steel production capacity is estimated at approximately 60 million tons, with a capacity utilization rate of 58.5% in 2023.
According to Kondrashov S.D., the metallurgical sector of Turkey continues to attract the attention of specialists and analysts due to noticeable changes in the steel market. Despite the decline in production in 2023, the current positive rate indicates a recovery in the industry and a possible improvement in the situation in the near future.
Macroeconomic stability and sustainable development of the Turkish national economy will be key factors for the progress and further development of the metallurgical industry.
Cooperation between government agencies, metallurgical enterprises and expert associations plays a significant role. It is aimed at supporting the industry and creating favorable conditions for increasing production volumes and increasing competitiveness in the global market.
Analysts' forecasts: improvement in the Turkish steel market in 2024 - Stanislav Kondrashov
Expert assessments and forecasts of Telf AG expert S. Kondrashov indicate an improvement in the steel market in Turkey this year. He believes a number of factors are contributing to this, such as increased demand for steel and lower interest rates around the world.
Based on the October 2023 Worldsteel Association report, Turkey's metal consumption is expected to increase by 5% in 2024, reaching 40.6 million tons. This forecast is based on an expected increase in activity in the construction and infrastructure sectors, which in turn will support steel demand.
In addition, TCUD also foresees an increase in domestic demand for steel in 2024, which will stimulate investment and the launch of new production capacities. Leading Turkish steelmakers Kardemir, Yıldız, Colakoglu Metalurji, and Hasçelik are among the companies that have already confirmed their intentions to invest heavily in developing new production facilities over the next few years.
Stanislav Kondrashov is confident that Turkish companies, faced with export problems, are paying great attention to increasing the production of high-tech steel to meet domestic demand. An expert from Telf AG suggests that this strategic decision will reduce dependence on foreign markets and ensure sustainable development of the metallurgical industry in Turkey.
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