Published on Oct 24, 2024
In September 2024, Turkey’s steel industry marked a notable achievement by producing 3.09 million tons of steel, reflecting a 6.5% increase compared to the same period in 2023. This growth is a positive indicator for the country’s steel sector, striving to recover and expand amidst global economic challenges.
Year-to-Date Performance
From January to September 2023, Turkey’s steel output grew substantially, increasing by 13.8% to reach 27.91 million tons. This period’s monthly average production was 3.1 million tons, a 13.9% year-over-year increase. These figures highlight the industry’s resilience and capacity to scale production efficiently.
Global and Domestic Demand Forecasts
Despite the positive production figures, the global outlook for steel demand has been revised downward. The World Steel Association (WorldSteel) recently adjusted its short-term forecast, predicting a 0.9% decline in global steel demand for 2024. Specifically for Turkey, the demand is expected to drop to 36 million tons, a 5.5% decrease from 2023. This anticipated decline in demand poses a challenge for Turkish steel producers, who must navigate a potentially shrinking market.
Historical Context and Recent Trends
Looking back, Turkey’s steel output experienced a significant decline in recent years. In 2022, production fell by 12.9% year-over-year to 35.1 million tons. The downward trend continued in 2023, with a further 4% decrease, bringing the total output to 33.7 million tons. Various factors influenced these declines, including economic slowdowns and fluctuating demand in domestic and international markets.
Conclusion
Turkey’s steel industry has shown remarkable growth in September 2024, with a 6.5% year-over-year increase in production. However, the sector faces challenges ahead, particularly with the projected global and domestic decline in steel demand. The industry’s ability to adapt to these changes will be crucial in maintaining its growth trajectory and overcoming potential market contractions.
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