Published on 05 August 2024
Turkey’s steel industry has shown remarkable growth in exports during the first half of 2024 despite a decline in
domestic consumption. According to recent data, Turkey’s steel exports surged by 45.1% year-on-year (y/y) from
January to June, reaching a total of 6.49 million tons. This significant increase highlights the country’s growing
presence in the global steel market.
Turkish steelmakers exported 1.14 million tons of steel in June alone, marking a 30.9% increase compared to June 2023. This monthly performance underscores the robust demand for Turkish steel abroad, driven by competitive pricing and quality.
However, the domestic scenario presents a contrasting picture. Turkey’s steel consumption fell by 4% y/y to 19.04 million tons in the first six months of 2024. The decline was even more pronounced in June, with consumption dropping by 13.3% y/y to 2.89 million tons. This reduction in domestic demand could be attributed to various factors, including economic challenges and shifts in industrial activity.
Looking back at 2023, Turkey produced 33.714 million tons of steel, 4% less than the previous year. On average, the nation produced 2.81 million tons of steel monthly in 2023, reflecting a 4.04% y/y decrease. These figures indicate a trend of declining production, which may be linked to the broader economic conditions and market dynamics.
The contrasting trends of rising exports and falling domestic consumption suggest that Turkish steelmakers increasingly focus on international markets to sustain their growth. This strategic shift could help mitigate the impact of reduced local demand and position Turkey as a key player in the global steel industry.
As Turkey navigates these dynamics, industry stakeholders and analysts will closely watch the steel sector’s performance. The ability to balance export growth with domestic market stability will be crucial for the long-term sustainability of Turkey’s steel industry.
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