Turkey has a steel trade deficit in the first five months of this year, but it is expected that the new steel production capacity that may be launched in the next 2-3 years will further restrict imports.
The latest statistics from the Turkish Iron and Steel Manufacturers Association (TCUD) show that Turkish steel mills exported 7.5 million tons of steel from January to May, a year-on-year increase of 17.4%. This was mainly due to the base effect and was also driven by the rise in global steel prices. The export value increased by 58.4% year-on-year to US$5.2 billion. In the first five months of this year, Turkey's steel imports increased significantly by 49.4% year-on-year to 7 million tons, and the value of imports increased by 88.1% year-on-year to US$5.5 billion.
TCUD stated that global trade protection measures are affecting global trade activities and steel exports from Turkish steel mills. In order to avoid the trade deficit, the Turkish steel industry has accelerated the construction of new steel production capacity. In recent months, Turkish steel companies have successively announced new or expanded capacity projects, especially flat steel production projects. In the next 2-3 years, the new investment is expected to increase Turkey's flat steel production capacity by 6-8 million tons, which is expected to alleviate the shortage of supply in the Turkish market and reduce imports.
The main Turkish steel manufacturer Tosyali Demir Celik continues to implement the construction of its new 3.5 million tons/year hot rolled coil plant. The new plant is scheduled to start production at the end of 2022. Turkey's Choraklu Metallurgical Company and Habas Steel Plant are also advancing their capacity expansion projects and carrying out technological upgrades. MMK (Russia-Ma Steel) has decided to restart the production of hot coils (5877, 132.00, 2.30%) of its Turkish coil subsidiary MMKMetalurji, and is expected to produce the first batch of hot-rolled coils at the end of July. MMKMetalurji's total hot rolled coil production capacity is 2.3 million tons/year, which has been idle since November 2012. In addition, some Turkish long products producers have also begun to invest to increase production capacity and expand their product range.
(World Metal Herald)
Post time: Jul-12-2021