Steel capacity utilization rate decreased

General capacity utilization in the basic metal industry decreased to 75.1 percent in December. However, the sector representatives, who pointed out that the capacities in the steel industry have decreased to 50 percent, are worried. According to the data of Turkish Steel Producers Association (TÇÜD), Turkey's crude steel production amounted to 2.4 million tons in November 2022. Due to the 30.7 percent decrease in production, the capacity utilization rate decreased to 51 percent in November. The 11-month capacity utilization rate, on the other hand, decreased from 74.8 percent to 63.3 percent compared to the same period of the previous year. The capacity utilization rate is expected to decrease to 62.9 percent in 2022.

Emphasizing that it is not possible to improve the competitive conditions of the sector as long as natural gas and electricity prices are at these levels, Yayan reminded that the steel industry is observed in rival countries and said, “The Turkish steel industry has no support. For this reason, the sector cannot compete in export markets and cannot make capacity investments and modernization investments. We expect energy prices to be reviewed in line with this, taking into account the declining global energy prices in Turkey.”