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Turkish steel industry will increase production capacity in 2024

Turkish Steel Producers Association Secretary General Veysel Yayan stated that capacity utilization rates will increase with various measures to be implemented in the sector in 2024 and said, “Thus, we estimate that the sector will exceed the record production level of 40.4 million tons.”

Yayan, Secretary General of the Turkish Steel Producers Association (TCUD), made an evaluation regarding the 2023 performance of the Turkish steel industry and its 2024 expectations.

Stating that the production of the Turkish steel industry decreased by 13% in 2022 compared to the previous year, Yayan said that the decline continued in the first half of this year.

Yayan pointed out that the gradual recovery in production will occur in the second half of 2023, “This recovery was influenced by the fact that the facilities in the region started production, especially after the earthquake disaster in the south of Turkiye, the decrease in energy input costs to reasonable levels, and the commissioning of around 6 million tons of new capacity as of the 3rd quarter of the year.”

On the other hand, Yayan informed that crude steel production decreased by 6.1% from 32.5 million tons to 30.5 million tons in the 11 months of the year compared to the same period of the previous year, and that there was an increase of 18.8% in imports.

Yayan stated that the addition of the February 6 earthquakes to the stagnation observed in the world steel industry due to the Russia-Ukraine War last year and the subsequent rapid rise in energy prices had a negative impact on the Turkish steel industry.

“Capacity utilization rates are expected to increase in 2024”

Emphasizing that a significant increase is expected in the sector in 2024, thanks to the new capacities that came into operation in the second half of this year, Yayan said:

“It is important that the investments launched this year are supported by domestic consumption so that capacity utilization rates can reach the 75% level in 2021. This is also necessary for new investments to continue. In addition to capacity increases, energy investments for green transformation and investment efforts for input diversity are expected to increase. In 2024, it is anticipated that energy costs will remain at reasonable levels, capacity utilization rates will increase by implementing protection measures against dumped and state-supported product imports, and by placing the inward processing regime within a framework that will not hinder domestic input supply. Thus, we estimate that the sector will exceed the record production level of 40.4 million tons in 2021 and reach the export level of 15.2 million tons in 2022, making a positive contribution to Turkiye’s current account balance.”

Source: Trthaber / Prepared by Irem Yildiz

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