World crude steel production decreased by 9.9%!

Turkey's crude steel production was 3.4 million tons in November 2021, an increase of 6.1 percent compared to the same month of 2020, and 36.7 million tons in the January-November period, an increase of 13.4% compared to the same period of 2020. .

STEEL CONSUMPTION

In November 2021, final product consumption was 2.9 million tons with an increase of 11% compared to the same month of 2020, and 30.5 million tons with an increase of 12.9% in the January-November period.

FOREIGN TRADE

Export

Exports of steel products amounted to 1.5 million tons with a decrease of 0.4% in quantity, 1.5 billion dollars with an increase of 80.4% in value in November, compared to the same month of the previous year. It was 18 million tons with an increase of 21.9%, and 14.9 billion dollars with an increase of 96.4% in value.

Imports

Imports, which amounted to 1.2 million tons in November with an increase of 5.5% in quantity and 1.3 billion dollars in value with an increase of 71.9%, increased to 14.1 million tons in value in the January-November period, with an increase of 22.9% in quantity. It increased by 86.7% to 13 billion dollars.

Foreign Trade Balance

The ratio of exports to imports, which was 108.5% in the January-November period of 2020, rose to 114% in the same period of 2021.

WORLD STEEL PRODUCTION

According to the production statistics for November 2021 announced by the World Steel Association (worldsteel), world crude steel production was 143 million 262 thousand tons with a decrease of 9.9% compared to the same month of 2020.

In the January-November period, world crude steel production increased by 4.5% compared to the same period of 2020, reaching 1.8 billion tons.

In the January-November period of 2021, China's crude steel production decreased by 2.6% to 946.3 million tons, compared to the same period of 2020, while the second-ranked India's crude steel production increased by 19.3% to 107.3 million tons. million tons, while the crude steel production of Japan, which ranked third, increased by 16.8% to 88.4 million tons.

EVALUATION

In November, world crude steel production decreased by 9.9%, while China's monthly steel production decreased by 22%. In this decline, production restrictions by the Chinese government aimed at maintaining the dynamic balance between supply and demand and a 22% contraction in production due to emission reduction policy were effective. Especially since the second half of the year, monthly production decreases in China, which accounts for 54% of the world's crude steel production, led to a slowdown in the world crude steel production rate. As a matter of fact, the increase in world crude steel production remained at the level of 4.5% in the 11-month period.

While the increase in world steel production remained at the level of 4.5% in the first 11 months of 2021, Turkey produced 36.7 million tons of crude steel with an increase of 13.4%. November was the month with the highest production level after October and August. In December, when production stopped due to energy cuts, even if 3 million tons of production, which is the lowest monthly production figure of this year, is realized, at the end of the year, the level of 37.5 million tons in 2017, which is the highest production figure of all time, will easily be exceeded. It is estimated that it will be close to a million tons.

In the first 11 months of 2021, total steel exports amounted to 18.1 million tons with an increase of 21.9% in quantity compared to the same period of 2020, and 14.9 billion dollars in value with an increase of 96.4%. The upward trend in our exports is expected to continue in the coming months.

The increase observed in imports in 2020 continued in the January-November period of this year. Imports amounted to 14.1 million tons with an increase of 22.3% in quantity and 13 billion dollars in value with an increase of 86.7%. 66.6% of 14.1 million tons of imports were realized within the scope of Inward Processing Regime. The share of imports in total steel consumption was 32.5%.

The ratio of exports to imports, which was 108.5% in the first 11 months of 2020, increased to 114% in the same period of 2021. The 6-point increase in the export-import coverage ratio this year stemmed from the increase in exports to South Asian and South American markets, with emphasis on market diversification, despite the high protection rates in the industry's main export markets.

In order to sustain the increase in exports in 2022, it is necessary to loosen the protection measures in the USA and EU on the one hand, and to put an end to the energy cut practices on the other hand.