Turkish steelmakers are targeting 2024 production in line with levels last seen in 2021 on strong domestic demand and the normalization of energy prices, according to Veysel Yayan, general secretary of the Turkish Steel Producers’ Association.
Speaking to S&P Global Commodity Insights on the sidelines of the EUROMETAL event in Istanbul, Yayan was also bullish on demand growth.
In 2021 Turkish crude steel production totaled 40.4 million mt and domestic consumption 33.4 million mt. Two years later consumption had grown to 38.1 million mt, whereas production had dropped to 33.7 million mt despite an installed capacity of 59.3 million mt.
“Imports, especially flat steel imports, are too high in Turkey,” Yayan said. “In particular, the share of imports in flat steel consumption exceeded the level of 47.7% [in 2023].
“While it will take time to have safeguard practices similar to those in the EU or the US, we hope to achieve the same approach as soon as possible, in order to be in a position to utilize the demand opportunities in our domestic steel market,” he said.
Turkey’s ministry of commerce on Oct. 31 opened an antidumping investigation against imports of hot-rolled coil from China, India, Japan and Russia.
“During the second half of the year, it will be clear whether the antidumping duties will be applied or not,” Yayan said. “If applied, the antidumping duties will support steel production.”
In 2023 flat steel consumption in Turkey amounted to 19.5 million mt. Of that figure, 9.3 million mt was imported, with 3 million mt coming from China, according to the association.
Talking about the energy transition, Yayan said the EU had put Turkey on the same level as developing countries, but that since most of Turkey’s steel production is electric arc furnace-based, this should not be the case, since the EAF route produces fewer emissions. Additionally, Yayan called on the government to support companies in their energy transition goals.
“The World Bank has allocated a $560 million financing package for the green transition but this covers all sectors — this amount will not be enough,” Yayan said, adding that according to the World Bank, Turkey needs around $65 billion in resources to achieve its net-zero goals by 2050, mainly to help companies in their Scope 2-related energy use for EAFs.
During the conference, Yayan also stressed that Europe should not subject Turkey to the same safeguard systems as China, Vietnam, Taiwan and South Korea, considering its low emissions and the free trade agreement with the EU.
Author: Annalisa Villa, annalisa.villa@spglobal.com
