In January-June 2024, Turkish steelmakers increased steel production by 16.9% compared to the same period in 2023, to 18.61 million tons by data from WorldSteel. And Turkey has surpassed Germany to become Europe’s largest steel producer, according to data from January 2024.
In June, Turkey produced 3.07 million tons of steel, up 4.3% compared to June 2023. The average monthly steel production since the beginning of the year amounted to 3.1 million tons compared to 2.81 million tons a year earlier.
Pig iron production in the first half of the year reached 5.19 million tons, up 31.9% year-on-year. In June, this figure decreased by 0.3% y/y and 6.8% m/m – to 0.83 million tons. Average monthly pig iron production amounted to 0.87 million tons compared to 0.72 million tons in January-June last year.
The decline in iron and steel production over the month was driven by weak demand and the week-long holiday period, which prompted many plants to schedule maintenance. At the same time, producers are under pressure from weak domestic and export demand, import pressure, continued stability in scrap and rebar prices, and an unhealthy spread between hot-rolled coil and scrap prices.
In 2023, Turkey reduced steel production by 4% compared to 2022, to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million tons. The decline in steel production in the country in 2022-2023 is due to macroeconomic instability, which has led to high uncertainty in the domestic market.
There are 29 steelmaking plants in Turkey, including 3 blast furnace plants and 26 electric arc furnaces. Their annual steelmaking capacity is estimated at about 60 million tons. In other words, in 2023, capacity utilization was 58.5%.
The significant increase in Turkey's steel production highlights the global demand for steel and the need for efficient and sustainable steel manufacturing processes. The oxygen-enriched smelting technology for blast furnaces is an effective way to significantly improve smelting efficiency and enhance production and quality. Currently, steel mills widely use VPSA (vacuum pressure swing adsorption) oxygen generation technology into inject oxygen to blast furnaces and address the oxygen deficiency. The process has become very common in major steel-producing countries such as China and India as an optimal solution for low-cost oxygen production. PKU Pioneer is a specialized supplier of VPSA oxygen generation systems. Based on advanced VPSA/PSA oxygen generation technology, PKU Pioneer has successfully exported over 10 oxygen units, with a total oxygen production capacity of 116,215Nm3/h, to overseas steel enterprises to provide a reliable and cost-effective oxygen source for blast furnace oxygen-enriched ironmaking and EAF steelmaking. By offering such solutions, PKU Pioneer not only supports steel mills in enhancing production efficiency but also contributes to their goals of achieving green and high-quality development.
(Reproduced from GMK Center)
