Turkish Steel Sector Records 3.5 Million Tons of Production

Turkish Steel Sector Achieves 3.5 Million Tons Production The Turkish Steel Producers Association reported that August saw all-time peak monthly crude steel production of 3.5 million tons, strengthening the sector's prospects of reaching an annual maximum production volume of 40 million tons. Based on the Association's statement, assessments were made regarding developments in the sector during August. With crude steel production of 3.5 million tons in August, the Turkish steel sector achieved all-time peak monthly crude steel production and maintained its 7th place ranking in global monthly steel production. According to the statement, this situation, driven by momentum in the steel sector with rising capacity utilization rates, surpasses the previous all-time production record of 37.5 million tons reached in 2017, strengthening the likelihood of reaching 40 million tons by year-end. The statement indicated that the Turkish steel sector achieved the highest monthly export growth rate in August with a 70.9 percent increase, providing the following information: "China's decision to reduce production to meet green transition targets while directing its current production toward domestic consumption—China alone accounts for 60 percent of global steel production—has created a major opportunity for the Turkish steel sector. Our steel exporters increased exports to the Far East market by 59 percent during January-August. Exports to the Latin American market increased by 339 percent, reaching approximately 1.7 million tons. On the other hand, our hot-rolled coil exports in August declined by 23 percent due to robust domestic demand, despite an 11.9 percent increase in production." The statement noted that 10.8 million tons of steel was imported during January-August with a 30.6 percent increase, adding: "67 percent of this import was carried out duty-free under the Inward Processing Regime (IPR). During January-August, of the 5.4 million tons imported from CIS countries with a 38 percent increase, 94 percent was conducted duty-free under the IPR. Of the 242 thousand tons imported from Middle East/Gulf countries with a 1,693 percent increase compared to the same period of the previous year, the IPR share stands at 94 percent." the information was provided. The statement noted that the uncontrolled increase caused by the IPR in steel imports has reached unsustainable levels for both the Turkish steel sector and the country's foreign trade balance, and therefore stressed that reexamining the IPR application and placing it within reasonable bounds is of vital importance.