Turkish steel industry's export and import balances are changing

According to the evaluations of Turkish Steel Exporters' Association;

In January of 2023, with Turkey's crude steel production decreasing by 17.6% to 2.6 million tons, the capacity utilization rate fell to 56.6%. The contraction in the exports of the sector, which weakened to a great extent, deepened even further, reaching the level of 42%.

With the decision to postpone the effective date of import duties applied to flat steel products, which is expected to come into effect on February 28, to April 1, it is expected that a significant amount of imported products will enter Turkey until enounced date. Thus the recovery in the import coverage ratio of exports, which has decreased to the level of 55%, will be realized on April 1st. This has raised concerns that it will be delayed for later.

The Turkish steel industry, which is expected to have no difficulties in meeting the need arising from the earthquake, has declared that it is ready to fix the need for housing investments to be made by AFAD in the earthquake region at the prices on February 1, excluding the increases in input costs and exchange rates.

Depending on the continuation of the decrease in energy prices in the coming months and the implementation of taxes as of April 1, it is expected that the sector will improve both in production and exports, and at the same time, it is expected to maximize its contribution to the Turkish economy by making serious gains in terms of import substitution thanks to the new capacities created.