Türkiye ascends to top spot in European steel production, surpassing Germany

Türkiye has surpassed Germany to become Europe's largest steel producer, according to recent data from January 2024.

The Türkiye Steel Producers Association (TCUD) reported a remarkable 24.7% increase in crude steel production in January 2024 compared to the same period last year, reaching 3.2 million tons.

This milestone marks Türkiye's re-entry into the world's top ten steel producers, positioning it seventh globally.

The surge in production follows a period of recovery after a devastating earthquake, alongside reductions in energy input costs and an approximately 4.5 million-ton capacity increase.

This rebound in production started in the second half of 2023, with increases of 25.4% and 21.2% in November and December, respectively.

The rise in domestic steel consumption, which saw a 19.5% increase in January 2024 to 3.5 million tons, has been accompanied by a significant growth in exports. Steel product exports increased by 23.0% in quantity and 10.1% in value compared to January 2023, reaching 894.7 thousand tons and $662.1 million, respectively.

Notably, flat product exports saw an 89.1% increase to 347.8 thousand tons, primarily because of investments in high-value products like stainless steel, armor steel, train wheels, and rails. However, regional conflicts in the Red Sea limited the growth in long-product exports to 2.0%.

Despite the increase in consumption, steel product imports saw a more moderate rise of 12.4% in quantity, leading to a decrease in the share of imports in consumption from the same period last year. This dynamic suggests a strengthening of the domestic steel industry in Türkiye.

As Türkiye looks to 2024, the prospect of reduced interest rates in the European Union from the second quarter onward and an anticipated revival in EU steel consumption are seen as opportunities for continued export growth.

However, concerns are raised about China’s intensified focus on exports at state-supported and dumping prices, which could threaten the global steel industry and Türkiye’s sector in particular.

Türkiye’s ascent to become the largest steel producer in Europe and its seventh rank globally signals a significant stride in its industrial capabilities, showing resilience and strategic growth in the face of challenges. The future trajectory of Türkiye’s steel industry will likely influence its economy and the broader global steel market.

Source: Newsroom