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Turkey’s Crude Steel Market Outlook Report

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Crude steel comes in different forms such as slabs, billets and blooms, and ingots. Produced using continuous casting, slabs, billets, and blooms take the largest share of the crude steel market. Slabs are used to produce intermediate flat products (such as hot-rolled coil), while billets and blooms are used to produce long products (such as rebar and sections). Generally, almost all crude steel can be divided into two major categories based on production method: blast furnaces (BF) and electric furnaces (EF). EFs used in steelmaking include induction furnaces and electric arc furnaces (EAF). The economies of scale in BFs is generally better than that of induction furnaces; however, economic EAF capacities include a wider range of relatively small capacities rather than large ones.

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Product Description

With a GDP of $761 billion in 2019, Turkey was the second largest economy in the region that year, behind Saudi Arabia. The country joined the Economic Cooperation Organization in 1961 and also became a member of G20 in 1991. However, Turkey is still a developing country, according to the UN in 2019. With an annual output of 35 million tonnes of crude steel, the country is the largest producer in the region. EAFs have accounted for almost 70% of the country’s output on average over the past years. However, that share has shrunk with increased development in blast furnaces over the recent years.

Market drivers of Turkey’s crude steel

The share of the manufacturing sector in Turkey’s economy has been increasing owing to growing industrialization in the country. As industries develop, demand for steel as the most commonly used metal in various industries will increase. With the share of the manufacturing sector in the country’s GDP expected to grow over the coming years, the country’s steel demand is forecast to further improve with increasing industrialization.

The auto industry is one of the largest consumers of steel in Turkey. The sector has had significant growth over the past years to make the country the second largest producer of commercial vehicles in Europe and the fifth largest producer of passenger vehicles in the region. With a nationalistic approach over the recent years aimed at producing domestic cars that can lead global markets, the industry has attracted massive investment; over the past two decades, more than $800 million has been invested in the sector on annual average. As government support for electric vehicles increases, the industry is expected to continue its accelerated growth. This can significantly boost demand for steel and steel products.

Turkey reported the first case of Covid-19 in the latter half of March 2020. Not much longer, in mid-April, daily confirmed cases exceeded 5,000 and the country was officially facing a pandemic. To fight the pandemic, the government restricted businesses and ordered nation-wide lockdowns. As a result, the country’s mobility index dropped to around 60%. Thus, Turkey’s real GDP growth is forecast to be around -1%. With the restrictions implemented by the government due to the Covid-19 pandemic, demand for steel products and consequently crude steel will weaken. Moreover, the spread of Covid-19 in Turkey’s export destinations will weigh on the country’s exports.

Overview of Turkey’s crude steel market

As mentioned earlier, EFs account for about two thirds of total crude steel produced in Turkey. The country mostly uses EAFs to produce steel, consuming scrap as the main raw material; this has made Turkey the largest importer of steel scrap in the world. The other part of the country’s crude steel output is accounted by blast furnaces using raw materials such as pellets and iron ore sinter. Despite the considerably large crude steel output, the development of industries for intermediate and finished products creates significant demand for crude steel, so that the country has to import a considerable part of its domestic demand.

Thus, Turkey imports 35 million tonnes of crude steel every year to become one of the net importers on a global scale. The country’s imports hit a peak in the mid-2010s, but as demand weakened and output declined slightly, imports decreased. Although demand for crude steel is likely to increase given the country’s industrial outlook, it should also be noted that the Covid-19 pandemic will inhibit the potential quick recovery of the country’s economy in the near term. Thus, Turkey’s net imports are expected to increase slightly in the early years of the forecast period, but remain flat thereafter.

Breakdown of Turkey’s crude steel market

The crude steel market in Turkey can be analyzed under three product categories: slabs, billets and blooms, and ingots. Billets and blooms account for a large share of the country’s crude steel output, which are used to produce long products. Crude steel products can also be categorized based on shape and appearance, including carbon steel, stainless steel, and alloy steel. Carbon steel has the largest share in Turkey’s steel consumption, and it is the lowest-priced. Alloy steel is the next largest in terms of market share, while stainless steel has the smallest share but the highest prices. The country’s consumption of crude steel is also analyzed in terms of applications in steel products and consumer industries.

Key players in Turkey’s crude steel market:

  • Çebitaş Demir Çelik Endüstrisi A.Ş.
  • CER Çelik Endüstrisi A.Ş.
  • Çolakoğlu Metalurji A.Ş.
  • Diler Demir Çelik Endüstrisi ve Ticaret A.Ş.
  • Ege Çelik Endüstrisi Sanayi ve Ticaret A.Ş.
  • Ekinciler Holding A.Ş.
  • Erege Metal Demir Çelik Sanayi ve Ticaret A.Ş.
  • Ereğli Demir ve Çelik Fabrikalari T.A.Ş. (Erdemir Group)
  • Habaş Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S.
  • İçdaş Demir Çelik Enerji Tersane ve Ulaşım Sanayi A.Ş.
  • İskenderun Demir ve Çelik A.Ş. (Isdemir)
  • İzmir Demir Çelik Sanayi A.Ş. (IDÇ)
  • Kaptan Demir Çelik Endüstrisi ve Ticaret A.Ş.

Additional Information

Industry

Crude Steel
Region

Turkey
Report Type

Industry Report

Specifications

Report Attribute Details
The base year for estimation 2019
Historical data 2009-2018
Forecast period 2020-2025
Quantitative units Value in USD and Volume in Tonne
Report coverage Market Overview, Dynamics, Market Outlook, Risks to Forecast, Consumer Market, Industry Overview, Market Landscape, Competitive Landscape, Market Attractiveness, External Macro Environment Analysis
Segments covered Source, Composition, Type, Application
Pricing and purchase options Please explore our purchase options to meet your exact research needs.

Reasons to Buy

  • Recognize the geographical distribution of import demand
  • Identify the current and future key players of the trading market
  • Achieve a better insight on potential target markets
  • Understand the behavior of major suppliers/customers either globally or regionally
  • Identify competitors as a feed for market analysis

Table of Content

  1. Executive summary
  2. Introduction
    • Objective
    • Market under study
    • Product
      • Product specifications
      • Consumption structure
        • Applications
        • Physical properties
      • Subjects discussed
      • Geographical scope under study
      • Study timeframe
      • Study currency
      • Potential audience
  1. Market dynamics
    • Market drivers
    • Restraints
    • Opportunities
    • Challenges
  2. Market overview
    • Market size
    • Industry capacities
      • Existing capacities
        • Capacity distribution
        • Geographical distribution of capacities
      • Future capacities
    • Output
      • Output trends
      • Operating rates
    • Consumption
      • Consumption trend
      • Consumption Share of domestic product
    • Trade
      • Exports
      • Imports
      • Trade balance
      • Market balance
    • Market breakdown by product type
    • Market breakdown by product type
    • Market breakdown by application
    • Inventory
      • Producers inventory
      • Consumers inventory
      • Traders inventory
  1. Market outlook
    • Market factors
      • Raw materials
      • Costs and prices
      • Competition
      • The government
      • Other factors
    • Future scenarios
    • Risks to forecast
  2. Consumer markets
    • End-user markets
      • Building construction
      • Infrastructure construction
      • Transportation manufacturing
      • Industrial equipment manufacturing
      • Durable goods manufacturing
      • Consumable goods manufacturing
    • Direct consumer markets
      • Major Direct consumers
        • Existing capacities
        • Drivers
  1. Export potentials
    • Destinations
      • Trade and insurance costs
      • Import market suppliers
      • Producers potential share
  1. Industry overview
    • Raw materials
      • The supply volume of raw materials
      • Supply channels of raw materials
      • Raw materials procurement costs
    • Cost structure of producers
    • Production cost curve
    • Industry value added
    • Generated new scrap
    • Technology
  2. Market landscape
    • Domestic sales markets
      • Pricing in the domestic market
      • Potential domestic demand
      • Trade agreements for imports
      • Foreign suppliers
    • Foreign sales market
      • Prices
      • Potential markets overview
      • Trade agreements for exports
      • Foreign customers
  1. Competitive landscape
    • Producers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
    • Consumers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
  1. Market attractiveness
    • Industry rivalry
    • Threat of new entrants
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Conclusion of Porter analysis
  2. PESTEL analysis
    • Political factors
    • Economic factors
    • Social factors
    • Technology factors
    • Environmental factors
    • Legal factors
  3. SWOT analysis
    • Large-scale companies with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Large-scale companies with unfavorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with unfavorable conditions
      • Short-term strategies
      • Long-term strategies

List of Figures

  1. Output and consumption; 2010-2019
  2. Market share of product applications; 2019
  3. Market surplus; 2019-2025
  4. Production process flowchart
  5. Market size; 2010-2025
  6. Existing capacity; 2010-2019
  7. Capacity distribution; 2019
  8. Geographic distribution of capacities; 2019
  9. Development of future capacity; 2010-2025
  10. Amount of output; 2010-2025
  11. Operating rates of production plants; 2010-2025
  12. Amount of consumption; 2010-2025
  13. Consumption share of domestic product; 2010-2025
  14. Exports of product; 2010-2019
  15. Imports of product; 2010-2019
  16. Historical trade balance; 2010-2019
  17. Future Market balance; 2021-2025
  18. Market output breakdown by alloy type; 2010-2025
  19. Market consumption breakdown by alloy type; 2010-2025
  20. Market balance breakdown by alloy type; 2010-2025
  21. Market output breakdown by product type; 2010-2025
  22. Market consumption breakdown by product type; 2010-2025
  23. Market balance breakdown by product type; 2010-2025
  24. Market consumption breakdown by application; 2010-2025
  25. Inventories of raw materials and products at producers factories; 2010-2019
  26. Consumers’ inventory of product; 2010-2019
  27. Traders’ inventory; 2010-2019
  28. Production forecast, according to raw materials and sales analysis; 2019-2025
  29. Market surplus; 2019-2025
  30. The share of end-user industries in the consumption; 2010 and 2019
  31. Changes in the end-consumption of extrusion products; 2019 vs 2025
  32. Applications in building construction industry; 2019
  33. Applications in infrastructure construction industry; 2019
  34. Applications in transportation manufacturing industry; 2019
  35. Applications in industrial equipment manufacturing industry; 2019
  36. Applications in durable goods manufacturing industry; 2019
  37. Applications in consumable goods manufacturing industry; 2019
  38. Capacity distribution structure of direct consumers; 2019
  39. Existing capacities of direct consumers in each province; 2019
  40. Suppliers of the export potential destination; 2019
  41. Historical exports to the export potential destination and future potential; 2016-2025
  42. Up-stream domestic supply; 2010-2019
  43. Raw materials domestic supply; 2010-2019
  44. Supply channels of producer plants
  45. Spot price of raw material in the market; 2010-2025
  46. Cash cost structure for production the product; 2019
  47. Production cost curve of the plants; 2019
  48. Gross value added of the industry; 2010-2019
  49. Generated new scrap; 2010-2019
  50. Sales channels
  51. Realized price of the product in the market; 2010-2025
  52. Potential demand of each province; 2019
  53. The main foreign suppliers to the market; 2010-2019
  54. FOB price vs domestic market; 2010-2025
  55. Map of global major importers > 20,000t; 2019
  56. Major foreign customers; 2010-2019
  57. Revenue structure of the producers; FY2019
  58. Sales income and gross profit margin of the producers; FY2010-2019
  59. Output and sales of the producers; FY2010-2019
  60. Revenue structure of the consumers; FY2019
  61. Sales income and gross profit margin of the consumers; FY2010-2019
  62. Output and sales of the consumers; FY2010-2019
  63. SWOT matrix for large-scale companies with favorable conditions
  64. Strategies positioning for large-scale companies with favorable conditions
  65. SWOT matrix for large-scale companies with unfavorable conditions
  66. Strategies positioning for large-scale companies with unfavorable conditions
  67. SWOT matrix for small enterprises with favorable conditions
  68. Strategies positioning for small enterprises with favorable conditions
  69. SWOT matrix for small enterprises with unfavorable conditions
  70. Strategies positioning for small enterprises with unfavorable conditions

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