In May 2024, Turkish steelmakers increased steel production by 14.9% compared to the previous month, reaching 3.21 million tons. This growth positioned Turkey as the 9th largest steel producer globally, according to the World Steel Association.
Compared to May 2023, steel production in Turkey rose by 11.6%, marking a recovery from the annual low in April and achieving the highest production level since the beginning of the year. From January to May 2024, Turkish steelmakers produced 15.54 million tons of steel, a 19.8% increase from the same period in 2023. The average monthly production for the first five months of 2024 was 3.1 million tons, up from 2.59 million tons a year earlier.
In 2023, Turkey's steel production decreased by 4% compared to 2022, totaling 33.7 million tons. This followed a 12.9% year-on-year decline in 2022, attributed to macroeconomic instability and high market uncertainty. Turkey's steelmaking capacity is approximately 60 million tons annually, with a capacity utilization rate of 58.5% in 2023.
Analysts predict an improvement in the Turkish steel market in 2024, driven by global steel demand growth and lower interest rates. The World Steel Association forecasts a 5% increase in steel consumption in Turkey in 2024, reaching 40.6 million tons. The Turkish Steel Producers Association (TCUD) expects domestic steel demand to grow, supported by investments and new capacity launched in the latter half of 2023. Major Turkish producers, including Kardemir, Yıldız, Colakoglu Metalurji, and Hasçelik, have planned significant investments in new production facilities for 2024 and beyond. Due to export challenges, Turkish companies aim to increase the production of higher value-added products for domestic needs.
