According to the Turkish Steel Production Association, Turkey's steel production is currently divided into four major producing areas: Marmara producing area (production capacity: 14.7 million tons), Izmir producing area (Aegean producing area, production capacity: 11.3 million tons), Iskenderun producing area (Mediterranean producing area, production capacity: 16.7 million tons), Black Sea producing area (production capacity: 8.4 million tons).
Throughout the year, the situation in Gaza led to the stagnation of Israel's demand for Turkish long materials, the triple pressure of high raw material costs, weak demand for finished materials and fierce competition from steel mills, and the situation of weak supply and demand under the internal diplomatic trap.CNC parts also affected.
So far this year, scrap import prices continue to rise, despite the weak demand for finished materials, but more optimistic market sentiment to a certain extent to support the rise in rebar prices, resulting in scrap import prices and rebar export prices almost rise and fall, the screw waste difference stabilized at 190-210 US dollars/ton, compared with the average difference of 300 US dollars/ton in previous years has narrowed. The price of scrap HMS 1/2 (80:20) imported from Turkey has dropped to as low as $350 / ton CFR this year. Therefore, it can be concluded that the export price of rebar from Turkish steel mills is at least 550 US dollars/ton FOB, which is much higher than other suppliers in the Middle East and North Africa region, and does not have a price advantage in the international market.
From the perspective of consumption structure, Turkey's domestic economic conditions, the construction industry and the manufacturing industry jointly determine the direction of steel demand. In 2017-2019, the continued downturn in the construction industry became the main drag on Turkey's steel consumption, which fell from 35.9 million tons in 2017 (the highest in the previous year) to 26 million tons, a decline of 27.6%. In 2020-2021, Turkey's manufacturing industry has rebounded rapidly, and at the same time, steel production capacity has also increased year by year, which has led to the recovery of steel consumption. According to the Turkish Steel Producers Association statistics, in 2021, Turkey's steel consumption increased rapidly to 33.4 million tons, an increase of 13.6%, but still less than the highest level in history.
However, entering 2022, the Russian-Ukrainian conflict has led to a sharp rise in Steel Strip For Hardware Tools, and the cost of smelting in Turkey has risen, while high inflation and the depreciation of the lira have dragged down Turkey's domestic economy, the main steel industry demand is insufficient, making Turkey's steel consumption has declined sharply, and the country's steel industry is also facing great challenges. Since the impact of the earthquake at the beginning of 2023, a series of post-disaster reconstruction projects have benefited the long material market demand. In addition, under the leadership of major steel mills, the Turkish authorities launched anti-dumping investigations on some exported varieties of steel from four Asian countries, maintaining the original anti-dumping duties unchanged, which will minimize the impact on the industry. Mysteel estimates that total steel consumption rose 18.5 per cent year-to-date to 28.9m tonnes