Higher EU demand supports Turkey’s steel output, exports: trade body

Published:06/03/2024 13:45:21 UTC
Higher demand from the EU and recently launched new capacity supported Turkey’s steel output and exports in the first four months of the year, Veysel Yayan, general secretary of the Turkish Steel Producers’ Association (TCUD), said in a statement June 1.

Turkey’s crude steel output rose 22.1% year on year to 12.3 million mt in the first four months of the year, while exports jumped 49.4% to 4.2 million mt, according to the latest TCUD data.

The rise in export volumes was mostly due to a 84.4% rise in flat steel shipments, Yayan said, adding however that steel import volumes into Turkey declined 5.9% to 5.5 million mt.

Steel export/import coverage ratio of the Turkish steel industry increased to 72:100 in January-April 2024 from 50:100 a year prior, TCUD data showed.

“The rise in Turkey’s crude steel output, however, began to slow down as of April amid lower demand in the EU and global markets,” Yayan said, citing the 12.5% month-on-month drop in April’s output.

Dumped and subsidized steel imports from some South Asian countries jumped 37% on the year to 2.8 million mt in January-April 2024, despite the decline in overall import volumes. Yayan said that to maintain the rise seen in Turkish steel output and export volumes, efficient precautions against these imports, similar to the US and EU, should be imposed.

The rise seen in steel imports from Asian countries, particularly from China, was despite the anti-dumping investigation opened by the Turkish Ministry of Trade on Oct. 31 against imports of hot-rolled coil from China, India, Japan and Russia.

The result of the anti-dumping investigation is expected to be announced in the coming months of 2024.

Low priced imports, slow demand and fluctuations in input costs have been pressuring Turkish mills’ steel pricing in recent weeks.

Platts, part of S&P Global Commodity Insights, last assessed the Turkish HRC steel price at $600/mt EXW May 31, stable on the week in a quiet market. The assessment, however, was $70 lower than the March 1 assessment.