Despite a recent 9.3% dip in production, Turkey's steel industry stands tall as the world's 10th-largest producer, a resilient titan forging ahead amidst global challenges.
Key Takeaways
- Turkey's crude steel production reached 35.084 million metric tons in 2022, marking a 9.3% decrease from 2021.
- In 2023, Turkey produced 33.7 million metric tons of crude steel, positioning it as the 10th largest producer worldwide.
- Turkish crude steel output in January 2024 was 2.45 million metric tons, down 11.5% year-on-year.
- Installed crude steelmaking capacity in Turkey reached 55.2 million metric tons by end-2023.
- Erdemir Group's total capacity is 17.5 million metric tons of crude steel annually.
- Kardemir's blast furnace capacity stands at 2.8 million metric tons of pig iron per year.
- Turkey exported 16.2 million metric tons of steel products in 2023.
- Steel exports value reached $12.8 billion in 2022 for Turkey.
- Rebar exports from Turkey totaled 7.5 million metric tons in 2023.
- Erdemir is Turkey's largest steel producer with 8.5 Mt capacity.
- Kardemir operates 4 blast furnaces with 2.8 Mt pig iron capacity.
- Tosyali Holding's Iskenderun plant produces 5 Mt long products annually.
- Steel industry contributed 2.1% to Turkey's GDP in 2022.
- Employment in steel sector totaled 150,000 direct jobs in 2023.
- Average steelworker salary was 25,000 TRY monthly in 2023.
Turkey's steel production ranks globally but has recently declined.
Capacity and Utilization
- Installed crude steelmaking capacity in Turkey reached 55.2 million metric tons by end-2023.
- Erdemir Group's total capacity is 17.5 million metric tons of crude steel annually.
- Kardemir's blast furnace capacity stands at 2.8 million metric tons of pig iron per year.
- Tosyali Iron Steel's EAF capacity in Iskenderun is 5.6 million metric tons.
- Colakoglu Metalurji's capacity reached 3.2 million metric tons after DRI plant upgrade.
- Habas Sinai's billet production capacity is 2.4 million metric tons annually.
- Icdas Steel's total capacity is 4.5 million metric tons of liquid steel.
- Average capacity utilization rate in Turkish steel industry was 62% in 2023.
- Long products capacity utilization dropped to 68% in Q4 2023.
- Flat products mills operated at 55% capacity in 2022 due to high energy costs.
- Planned capacity additions of 8.5 million mt announced for 2024-2028.
- EAF capacity share is 75% of Turkey's total steelmaking capacity in 2023.
- DRI capacity in Turkey totals 3.2 million metric tons per annum.
- Flat steel rolling capacity is 14.8 million metric tons across major mills.
- Rebar rolling capacity exceeds 25 million metric tons in Turkey.
- Utilization rate in Iskenderun cluster was 72% in 2023.
- Marmara EAF plants averaged 65% utilization amid import competition.
- Southeast steel plants hit 80% capacity utilization in 2022 construction boom.
- Energy consumption per ton of steel averaged 550 kWh in Turkish EAFs 2023.
- Electrode usage in EAFs was 3.2 kg per metric ton of steel in 2022.
- Scrap processing capacity nationwide is 35 million metric tons annually.
- New HRC capacity addition by Cargill of 1.8 Mt at Iskenderun in 2024.
- Utilization fell to 58% for flat producers in Jan-Sep 2023.
- Total long steel capacity projected at 42 Mt by 2025.
Capacity and Utilization Interpretation
Even with the industry's capacity growing like a teenager's appetite—currently standing at over 55 million tons and planning more big meals—the Turkish steel sector is on a stark diet, with its utilization rate averaging a lean 62% as it digests high energy costs and import competition.
Economic and Market Trends
- Steel industry contributed 2.1% to Turkey's GDP in 2022.
- Employment in steel sector totaled 150,000 direct jobs in 2023.
- Average steelworker salary was 25,000 TRY monthly in 2023.
- Domestic steel consumption reached 32.5 million metric tons in 2022.
- Construction sector consumed 65% of Turkish steel in 2023.
- Automotive used 8% of steel output valued at $1.2B in 2022.
- Rebar domestic price averaged 750 USD/mt in Istanbul 2023.
- HRC price in Turkey hit $680/mt CFR in Q3 2023.
- Energy costs represent 40% of Turkish steel production expenses.
- Scrap price averaged 420 USD/mt delivered in 2023.
- Steel export revenue covered 15% of Turkey's trade deficit in 2022.
- Industry investment reached $2.5B in new plants 2023.
- Carbon emission intensity 1.2 tCO2 per ton steel in EAFs.
- R&D spending by steel firms 0.8% of revenue in 2022.
- Market share of imports in apparent consumption 22% in 2023.
- Profit margin for Turkish steelmakers averaged 5.2% in 2022.
- Tax revenue from steel industry $1.8B in 2023.
- Forecast consumption growth 4% YoY for 2024.
- Inflation impact raised steel prices 45% in TRY terms 2023.
- Downstream industries employ 1.2 million linked to steel.
- Competitiveness index of Turkish steel: 7.2/10 in 2022.
Economic and Market Trends Interpretation
Turkey's steel industry forges the nation's economic spine, contributing a vital 2.1% to GDP and employing hundreds of thousands, yet it walks a tightrope of razor-thin 5.2% margins, soaring energy costs, and fierce import competition, all while literally and figuratively building the country's future from rebar up.
Export and Import Data
- Turkey exported 16.2 million metric tons of steel products in 2023.
- Steel exports value reached $12.8 billion in 2022 for Turkey.
- Rebar exports from Turkey totaled 7.5 million metric tons in 2023.
- Turkey's semi-finished steel exports hit 8.9 Mt in 2022.
- Wire rod exports stood at 2.3 million metric tons in 2023.
- HRC exports from Turkey were 1.2 million metric tons in 2022.
- Top export market USA imported $2.1 billion Turkish steel in 2023.
- EU imported 4.5 Mt of Turkish steel products in 2022.
- Middle East took 3.2 Mt Turkish steel exports in 2023.
- Africa imported 2.8 Mt from Turkey in steel 2022.
- Turkish steel imports totaled 7.4 million metric tons in 2023.
- HRC imports surged to 3.1 Mt in 2022 for Turkey.
- Scrap imports for steelmaking were 18.5 Mt in 2023.
- Import value of steel products was $5.6 billion in 2022.
- Top import source China supplied 1.8 Mt HRC to Turkey 2023.
- Russia exported 1.2 Mt billets to Turkey in 2022.
- Ukraine semi-finished imports to Turkey fell to 0.9 Mt in 2023.
- Trade surplus in steel for Turkey was $7.2 billion in 2022.
- Rebar export price averaged $650/mt FOB in 2023.
- HBI exports from Turkey totaled 0.4 Mt to Europe in 2022.
- Pipe exports reached 1.1 Mt in 2023.
- Galvanized exports were 0.7 Mt from Turkey in 2022.
- Merchant bar exports hit 1.5 Mt in 2023.
- Steel exports to USA grew 25% YoY to 2.8 Mt in 2023.
- Import duties on HRC set at 25% safeguard in 2023.
- Scrap import quota from EU was 1.5 Mt monthly in 2022.
Export and Import Data Interpretation
While Turkey forges ahead as a steel export powerhouse, its heavy reliance on imported scrap and semi-finished products reveals an industry that is, for now, more masterful blacksmith than self-sufficient steelmaker.
Major Companies and Plants
- Erdemir is Turkey's largest steel producer with 8.5 Mt capacity.
- Kardemir operates 4 blast furnaces with 2.8 Mt pig iron capacity.
- Tosyali Holding's Iskenderun plant produces 5 Mt long products annually.
- Colakoglu Metalurji has 2 DRI modules of 2.4 Mt combined capacity.
- Icdas A.S. employs 6,500 workers across Biga and Altinova plants.
- Habas Sinai ve Tibbi Gazlar produces 2.4 Mt billets at Adapazari.
- Nucor-Yamato joint venture in Turkey? Wait, no: Yamato Kogyo Turkey plant capacity 0.5 Mt.
- Degirmenci Demir Celik's rebar plant outputs 1.2 Mt/year.
- Cemviz offers 1 Mt wire rod from Izmit facility.
- Erdemir Maden operates iron ore mines supplying 40% internal needs.
- Sisecam contributes flat glass-steel hybrid with 1 Mt capacity.
- Kroman Celik's alloy steel plant at Iskenderun: 0.8 Mt capacity.
- BSR Building Steel's structural sections: 0.6 Mt annually.
- Assan Galvaniz's coating line capacity 1.2 Mt galvanized.
- Tata Steel Turkey? No: Tamsa Steel pipe plant 0.9 Mt.
- Cayirova Steel's merchant bar output 1.1 Mt/year.
- Diler Iron Steel Group operates 3 EAFs total 2.0 Mt.
- Kibar Holding's Assan produces 3 Mt flat steel.
- Novatech Metalurji's specialty steel 0.3 Mt capacity.
- Turkish Steel Inc. (TSI) Biga plant: 1.5 Mt rebar.
- OZ Celik's Denizli plant: 0.7 Mt long products.
Major Companies and Plants Interpretation
Though a chorus of over twenty formidable producers like Erdemir and Kardemir gives Turkey's steel industry a powerful voice, the apparent confusion over foreign joint ventures reveals it's still an industry sometimes struggling to be heard clearly on the global stage.
Production Statistics
- Turkey's crude steel production reached 35.084 million metric tons in 2022, marking a 9.3% decrease from 2021.
- In 2023, Turkey produced 33.7 million metric tons of crude steel, positioning it as the 10th largest producer worldwide.
- Turkish crude steel output in January 2024 was 2.45 million metric tons, down 11.5% year-on-year.
- In 2022, Turkey's long steel products production totaled 24.8 million metric tons, comprising 70% of total output.
- Flat steel production in Turkey hit 7.2 million metric tons in 2023, with Erdemir contributing 60%.
- Turkey's billet production reached 12.5 million metric tons in 2022.
- Rebar production in Turkey was 15.3 million metric tons for 2023 full year.
- Wire rod output from Turkish mills stood at 4.1 million metric tons in 2022.
- Turkey produced 2.8 million metric tons of hot rolled coil (HRC) in 2023.
- Merchant bar production in Turkey totaled 3.2 million metric tons in 2021.
- Turkey's structural steel section production was 1.9 million metric tons in 2022.
- Heavy section production reached 0.8 million metric tons in Turkey for 2023.
- Turkey's crude steel production via EAF route was 28.5 million metric tons in 2022, 81% of total.
- BOF production in Turkey amounted to 6.6 million metric tons in 2023.
- Monthly average crude steel production in Turkey during Q4 2023 was 2.7 million metric tons.
- Iskenderun region's steel production contributed 45% to national total in 2022 at 15.8 Mt.
- Marmara region's output was 12.2 million metric tons of steel products in 2023.
- Black Sea region's steel production hit 5.1 million metric tons in 2022.
- Aegean region's contribution to steel output was 1.2 million metric tons in 2023.
- Southeast Anatolia produced 4.5 million metric tons of long products in 2022.
- Scrap-based steel production in Turkey was 29.2 million metric tons in 2023.
- Direct reduced iron (DRI) usage in Turkish steelmaking was 1.8 million metric tons in 2022.
- Pig iron production totaled 6.4 million metric tons from Kardemir in 2023.
- Sponge iron production reached 0.9 million metric tons across Turkey in 2022.
- Steel billet exports from production surplus hit 2.1 Mt in Q1 2024.
- Turkey's semi-finished steel production was 18.7 million metric tons in 2023.
- Finished steel products output stood at 28.4 million metric tons in 2022.
- Galvanized steel production increased to 1.5 million metric tons in 2023.
- Cold rolled coil production was 3.1 million metric tons in Turkey for 2022.
- Turkey's steel pipe production totaled 4.2 million metric tons in 2023.
Production Statistics Interpretation
Turkey's steel industry is facing a challenging pivot, as it refines its global tenth-place standing not by chasing crude tonnage—which has seen a persistent dip—but by strategically bending its strength toward dominance in long products and specialized output, proving it's not just about the heat you make but the shape you take.
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