turkish steel inudstry 2020 h1


Turkish steel industry’s first half of 2020 started with growth in crude steel production and finished steel consumption volumes. First quarter of 2020 initially showed signs of growth in steel production, which was later followed by slowdown stemmed from uncertainty.  Starting in March, coronavirus pandemic impacted the sector with lockdowns, affecting blast furnaces’ operations and lagged supply chains, while defining Turkish steel sector’s downturn during the second quarter of the year. Turkish crude steel production, and finished steel consumption declined considerably during the second quarter of 2020. Turkish steel exports’ volume decreased by 11.3% to approximately 9.9 million tons, whereas their value shrunk 17% down to $6.8 billion. Turkey’s rebar exports volume rose 0.7% to 2.72 tons in the first half of 2020. During this period, Turkish rebar exports to the United States grew considerably.

In June, Turkish steel sector and steel-using industries’ domestic sales showed positive signs of recovery, potentially increasing the speed of recovery from recent months. According to Turkish Automotive Distributors Association, sales of both light commercial vehicles and passenger cars jumped 387.5% year on year, whereas monthly increase was 23.2% in July.

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%

In 2020’s first quarter, Turkish steel sector’s crude steel production and finished steel consumption were up 9.6% and 42.3% respectively. Compared to the same period in 2019, Turkish steel sector’s first quarter performance experienced initial impacts of Covid-19 on the industry’s exports, which was already facing obstacles due to trade tensions. Turkish steel exports shrunk 11.6% to 5.1 million tons in volume. Exported hot rolled coils’ volume decreased by 35.4% and value declined by 44.4% to $287.56 million. Turkish wire rod exports value also contracted 37.5% to $149.35 million, and Turkey’s exported wire rods’ volume was 31.6% lower compared to the same period in 2019.

During 2020’s Q1, imported steel volume was 33.3% higher, amounting to 3.6 million tons, and Turkey’s steel imports’ value increased to $2.6 billion.

Turkish Steel Sector 2020 Q2

Turkish steel sector initially experienced difficult conditions in 2020’s second quarter. A sharp drop in local finished steel consumption between February and April period points out the stark contrasts and coronavirus’ impact on steel sector between first two quarters of 2020. A sudden change was partially due to local industries temporarily shutting factories during lockdowns.

Although steel imports’ volumes show early signs of rebounding in May and June as lockdown measures eased, overall imports’ volume declined by 9.2%. In June 2020, Turkish rebar exports jumped 63.9% compared to May. According to Turkish Statistical Institute, Turkey’s June steel rebar exports’ value increased by 60.3% to $196.62 million in a month.

In January – July period, domestic car sales rose 58.95%, and light commercial vehicles sales were up 65.8%. Although pandemic slowed down the automotive sector, sales since June have been picking up.

As one of the key steel-using sectors is showing signs of recovery, Turkish steel sector’s second quarter might be followed by further growth in line with positive signs since June.


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%