In Q1 2021, Turkish steel sector experienced increase in steel production, imported steel volumes and steel prices. Major steel producers such as Erdemir beat the quarterly earnings expectations with increasing prices parallel to demand. Q1 2021’s steel prices surged 27% compared to the previous quarter, which may result in an annual 76% increase in steel product prices, according to BNP Paribas.
|Turkish Steel Sector Q1 2021||January 2021||February 2021||March 2021||Q1 2021||Q1 2020||2021 vs 2020|
|Crude Steel Production||3,400,000 tons||3,000,000 tons||3,400,000 tons||9,800,000 tons||9,000,000 tons||+8.8%|
|Finished Steel Consumption||3,000,000 tons||2,800,000 tons||3,100,000 tons||8,900,000 tons||7,700,000 tons||+15.5%|
|Steel Exports||1,300,000 tons||1,300,000 tons||1,600,000 tons||4,200,000 tons||5,100,000 tons||-18.6%|
|Steel Exports Value||$749 million||$826 million||$1.1 billion*||$2.7 billion||$2.1 billion||+28.5%|
|Steel Imports||1,200,000 tons||1,200,000 tons||1,500,000 tons||3,900,000 tons||3,600,000 tons||+8.3%|
|Steel Imports Value||$872 million||$874 million||$1.2 billion||$2.9 billion||$2.6 billion||+11.5%|
Sources: TCUD – Turkish Steel Producers Association & BloombergHT
Turkey’s Steel Production Q1 2021
Turkey’s steel production reached 9.8 million tons in 2021’s first quarter, underlining an 8.8% YOY increase.
Turkey’s steel production has been growing since June 2020. Turkish steel sector began the year with a 12.7% increase in crude steel production, reaching 3.4 million tons in January. Turkish Steel Producers Association predicted 2021’s annual steel production may grow up to 38 million tons. According to TCUD, uncertainty stemmed from international steel markets pushed local steel producers to increase their production levels while shifting their attention towards the local steel market.
Crude steel production increased by 5.9% YOY in February 2021, followed by a 9.2% growth in the following month. Turkey’s finished steel consumption rose by 15.23% on monthly average to 8.9 million tons in 2021’s first quarter.
Turkey’s Steel Exports Q1 2021
Turkey’s steel exports volume reached 4.2 million tons, and exported steel value increased by 28.8% to $2.7 billion. Earlier in the quarter, Turkey’s export volume shrunk by 9.4% to 2.6 million tons, whereas steel exports’ value increased by 9.1% to $1.6 billion in January – February 2021. Steel exports value growth was considered in line with increasing demand for steel due to post-pandemic normalization.
Steel antidumping duties considerably impacted the country’s export volumes in the recent years. Turkey’s steel exports volume to the EU countries contracted by 40% in 2020. This trend continued in January 2021, resulting in a 36.6% decrease in steel exports volume to country’s largest steel export market. Turkey’s steel exports volume to European Union and the United States shrunk by 34%, and 48.5% respectively in the past two years.
Turkey’s hot rolled coil exports volume declined 37.9%, according to Turkish Iron and Steel Producers’ Association (TCUD).
Turkey’s Steel Imports Q1 2021
Turkey’s steel imports volume was up by 15.7% in Q1 2021, reaching 3.9 million tons. Imported steel value surged 42.5% YOY to $2.9 billion.
Turkey’s steel imports’ value increased by 19.5% while imported steel volume growth stalled at 0.3% between January – February 2021. Contrasting the first two months, imported steel volume surged 53.9%, while steel imports value jumped 81.6% to $1.2 billion. Similar to European steel market in Q1 2021 period, imported steel price increases are stemmed from the growing demand from steel-using sectors amid limited supplies.