Turkish steel output could rise 10% in 2022 on new capacity, energy relief: TCUD.

Turkey’s steel output is expected to reach a historic high in 2022 due to new capacity and as state gas distributor Botas called an end to recent gas and power cuts which had hit production, the Turkish Steel Producers’ Association (TCUD) said. Botas said in a statement natural gas flow cuts to industrial plants in Turkey ended as of 8 am local time Feb. 8, as gas flow to Turkey from Iran returned to normal.

Turkish steel output, which was hit by energy cuts in December and January, is expected to continue 2021’s upward trend in 2022.

“With the start of the new capacities Turkish steel output which reached 40.4 million mt in 2021 is expected to rise at least a further 10% in 2022. This is also expected to reduce the rise in steel imports, and increase the export/import coverage ratio to 120% this year,” industry body TCUD said in a statement sent to S&P Global Platts.

Turkey became Europe’s largest and the world’s seventh biggest steel producer in 2021 after a 12.7% rise in output, despite the negative effects of December’s power cuts, it added.

Steel production capacity in Turkey, especially in flat steel, is expected to rise notably in the coming years due to new investment.

Turkish coated coil producer Yildiz Demir Celik is planning to start hot-rolled coil production within three years by building a melt shop with a liquid steel capacity of 4 million mt and a hot-rolling mill with a finished product capacity of 3.5 million mt, according to a document submitted to the Ministry of Environment and Urbanization Jan. 24.

Another coated coil producer, MMK Metalurji, the Turkey-based subsidiary of Russian steelmaker Magnitogorsk Iron & Steel Works, already started hot rolled coil production at its electric arc furnace facility with a casting and rolling module in July 2021. The company is expected to reach 2 million mt production capacity in 2022.

Tosyali Demir Celik, one of Turkey’s largest steel producers, is also currently building a new flat steel mill with a liquid steel capacity of 4.55 million mt.

With other Turkish producers starting work to raise their HRC output, including big producer Colakoglu, the country’s total HRC production capacity is expected to rise more than 9 million mt/year in the coming few years, while some new coated coil and long steel capacities are also on the way.

— Cenk Can