As steel consumption in Turkey fell notably in September and imports remained a threat, Turkish mills focused more on exports, Turkish Steel Producers Association (TCUD) said in a statement sent to S&P Global Platts Nov. 1.
According to the latest TCUD data, steel consumption in Turkey declined by 24% year on year in September to 2.1 million mt, while export volumes rose 53% on year to 2.1 million mt.
Revenue generated from these exports increased more significantly by 186% in that month at $2 billion, amid strong steel pricing globally, the data showed.
Turkish steel output rose by 2.4% on year in September to 3.3 million mt, while output in the first three quarters of the year totaled 29.8 million mt, up 15% on year.
Steel consumption totaled 25 million mt in January-September, up by 14.6% on year, with the support of higher consumption figures seen in the first half.
Turkish mills’ steel exports totaled 14.8 million mt in that period, up 25.1%. on year, while the revenue generated from these exports rose by 95.7% to $11.7 billion.
“As the share of steel imports made within the scope of the inward processing regime in Turkey reached 67% [it] raised the pressure on the steel sector, Turkish mills focused more on export markets, ” TCUD said, adding that the recent decline in loan rates is expected to raise the steel demand of the manufacturing and construction steel sectors in the coming months, which could ease the export pressure on mills.
The inward processing regime in Turkey exempts exporters of finished steel, such as pipe makers, from feedstock steel import duties.
— Cenk Can