Turkish steel sector’s Q3 2020 crude steel production, and finished steel consumption levels show similarities to the performance back in January this year, pointing out to sector-wide normalization after COVID-19 pandemic’s impact. During the first nine months period local steel consumption jumped 14.9%, improving the overall outlook for the local steel sector. According to Turkish Steel Producers’ Association, steel sector’s production capacity usage was considered at less than optimal levels as half of the locally consumed steel was imported from partner countries.
|Turkish Steel 2020 Q3||July||August||September||2020 Q3 Total||Change %
(vs. 2020 Q2)
|Crude Steel Production||3,100,000 tons||3,200,000 tons||3,220,000 tons||9,520,000 tons||+5.77%|
|Finished Steel Consumption||2,700,000 tons||2,900,000 tons||2,800,000 tons||8,400,000 tons||+9.09%|
|Steel Exports||1,900,000 tons||1,400,000 tons||1,900,000 tons||5,200,000 tons||+1.96%|
|Steel Exports’ Value||$1.3 billion||$932 million||$1.3 billion||$3.532 billion||+9.28%|
|Steel Imports||1,403,000 tons||1,009,000 tons||1,200,000 tons||3,612,000 tons||+15.67%|
|Steel Imports’ Value||$792 million||$765.5 million||$881 million||$2.438 billion||+15.27%|
During the first two months of Q3 2020 period, Turkish steel exports volume experienced drops. In July, Turkish steel exports volume was down 1.6% to 1.9 million tons, and exported steel value decreased by 8.7% to $1.3 billion. In August, Turkish steel exports volume shrunk 7.7% down to 1.09 million tons and exported steel value increased by 14.9% to $1.02 billion.
During the first three quarters of 2020, Turkish crude steel production grew 2.6%, reaching 25.9 million tons, and local finished steel consumption was 21.9 million tons, up by 14.9%. Compared to the same period last year, Turkish steel exports’ volume and value shrunk 14.7% and 4.9% respectively.
Previous Quarters’ Performance
As Turkish crude steel production declined 26% on average between April and May, consumption and production increases in early June and July improved the overall look for the Turkish steel sector. Q2 2020 period signaled the biggest drops in both steel imports and exports, while steel capacity usage was also affected by lockdowns, and slowing down steel trade across the globe.
Turkish Steel 2020 Q1
|Turkish Steel 2020 Q1||January||February||March||2020 Q1 Total||Change %
(vs. 2019 Q1)
|Crude Steel Production||3,000,000 tons||2,900,000 tons||3,100,000 tons||9,000,000 tons||+9.6%|
|Finished Steel Consumption||2,000,000 tons||3,000,000 tons||2,700,000 tons||7,700,000 tons||+42.3%|
|Steel Exports||1,900,000 tons||1,600,000 tons||1,600,000 tons||5,100,000 tons||-11.6%|
|Steel Exports’ Value||$1.3 billion||$1.1 billion||$1.2 billion||$3.6 billion||-14.4%|
|Steel Imports||1,400,000 tons||1,200,000 tons||1,000,000 tons||3,600,000 tons||+33.3%|
|Steel Imports’ Value||$950 million||$817 million||$833 million||$2.6 billion||+13.4%|
Local sector began the year facing trade tensions, affecting the exports volume considerably. Compared to Q1 2019 period, Turkish steel exports’ volume decreased by 11.6% to 5.1 million tons. Exported hot rolled coils’ and wire rod exports shrunk 35.4% and 37.5% respectively. As steel exports value declined, imported steel volumes jumped 33.3% compared to the same period last year. Initial impact of COVID-19 pandemic started to become more visible in late March.
Turkish Steel 2020 Q2
|Turkish Steel 2020 Q2||April||May||June||2020 Q2 Total||Change %
(vs. 2020 Q1)
|Crude Steel Production||2,300,000 tons||2,300,000 tons||2,800,000 tons||7,400,000 tons||-18%|
|Finished Steel Consumption||1,400,000 tons||1,800,000 tons||2,400,000 tons||5,600,000 tons||-27.27%|
|Steel Exports||1,500,000 tons||1,400,000 tons||2,000,000 tons||4,900,000 tons||-4.03%|
|Steel Exports’ Value||$1 billion||$932 million||$1.3 billion||$3.232 billion||-11.3%|
|Steel Imports||563,000 tons||825,000 tons||1,400,000 tons||2,788,000 tons||-22.5%|
|Steel Imports’ Value||$504 million||$671 million||$940 million||$2.115 billion||-18.65%|
As coronavirus related initial lockdowns impacted the steel sector in March, both crude steel production and finished steel consumption showed stark differences compared to the performance in Q1 2020. Turkish steel exports volume and value shrunk 11.3% down to 9.9 million tons and 17% to $6.8 billion respectively. In June when steel-using industries’ domestic sales started to recover, steel sector showed first signs of normalization; Turkey’s steel rebar exports were up 63.9% compared to May. This trend continued in Q3 2020 period as overall Turkish steel exports increased by 7.5% in July year-on-year basis.