Steel Industry in Turkey Foreign Market Consulting Ltd. Sti Istanbul June 2014 Contents A B C D E Supply Page 03 Supply vs. Demand Page 05 Foreign Trade Page 06 Main Companies Page 07 Market Outlook Page 08 © 2014 Foreign Market Consulting Ltd. Sti. A. Supply Crude Steel Production • 8th largest producer in the world and the 2nd largest manufacturer in Europe in crude steel production, in 2013. (Source: World Steel Association, 2013) • • • 34.7 mn tons of crude steel production in 2013. (Source: World Steel Association, 2013) Compound annual growth rate in production btw. 2004-2013 was 6%. The share of flat steels in total production increased from 13% in 2006 up to 24% in 2013. (Source: Turkish Iron and Steel Association [TCUD], 2014) mn tons Crude Steel Production of Turkey 40,0 34,1 35,0 29,1 30,0 25,0 20,0 25,8 23,4 26,8 3,7 4,2 20,3 22,0 22,7 2006 2007 2008 3,1 25,3 34,7 8,8 8,4 27,05 26,3 2012 2013 9,7 7,3 4,8 15,0 10,0 35,9 20,5 21,8 2009 2010 24,4 5,0 0,0 Billet Source: Turkish Iron and Steel Association [TCUD], 2014 Slab 2011 Total 3 A. Supply Production Method • 71% of the crude steel was manufactured in electric arc furnaces in 2013. • In order to meet the scrap demand of electric arc furnaces, Turkey has become the leading scrap importer in the world. Production Method of Crude Steel, 2013 Tons; Percentage Share Basic Oxygen Furnace; 9.930.758; 29% Source: Turkish Iron and Steel Association [TCUD], 2014 Electric Arc Furnace; 24.723.306; 71% 4 B. Supply vs. Demand Production & Consumption of Steel Products • • • 31.3 mn tons of domestic consumption of steel products in 2013. 73% of the production and 53% of the consumption is composed of long products. Production of long steel is higher than the consumption whereas the production of flat steel is lower than the consumption volume. mn tons Production and Consumption of Finished Products 40,0 36,4 34,3 35,0 31,9 30,0 26,7 26,1 25,0 26,9 26,3 25,1 23,8 23,4 31,3 28,5 23,6 21,5 21,2 20,0 18,0 15,0 10,0 5,0 0,0 2006 2007 2008 2009 Production of finished goods Source: Turkish Iron and Steel Association [TCUD], 2014 2010 2011 2012 2013 Consumption of finished goods 5 C. Foreign Trade Exports and Imports of Steel • Turkey is a net exporter of steel: 19 mn tons of exports and 14.9 mn tons of imports in 2013. • The Middle East, USA and EU are the main destinations of exports. • Russia, Ukraine and the EU are the main sources of imports. '000 tons Foreign Trade of Steel 25,0 20,2 20,0 20,0 18,7 17,6 16,7 19,0 18,5 15,4 15,0 13,9 13,3 14,9 13,6 12,3 10,5 10,1 11,1 11,8 10,7 10,0 5,0 0,0 2005 2006 2007 2008 2009 Exports Source: Turkish Iron and Steel Association [TCUD], 2014 2010 2011 2012 2013 Imports 6 D. Main Companies Largest Manufacturers Company Net Sales (TRY mn), 2012* Eregli Demir ve Celik Fabrikalari T.A.S. 7,387 Iskenderun Demir ve Celik A.S. 5,400 Icdas Celik Enerji Tersane ve Ulasim Sanayi A.S. 4,922 Kroman Celik Sanayii A.S. 2,309 Toscelik Profil ve Sac Endustrisi A.S. 2,303 Diler Demir Celik Endustri ve Ticaret A.S. 1,952 Borcelik Celik San. Tic. A.S. 1,939 Yolbulan Bastug Metalurji Sanayi A.S. 1,834 KARDEMİR Karabuk Demir Celik San. ve Tic. A.S. 1,665 Izmir Demir Celik Sanayi A.S. 1,647 Borusan Mannesmann Boru San. ve Tic. A.S. 1,434 Nursan Metalurji Endustrisi A.S. 1,429 Kaptan Demir Celik Endustrisi ve Ticaret A.S. 1,428 MMK Metalurji San. Tic. ve Liman Isletmeciligi A.S. 1,394 Yazıcı Demir Celik Sanayi ve Turizm Ticaret A.S. 1,389 Ege Celik Endustrisi San. ve Tic. A.S. 1,105 Yucel Boru ve Profil Endustrisi A.S. 1,101 Ekinciler Demir ve Celik Sanayi A.S. 1,072 Kurum Demir Sanayi Dis Ticaret A.S. 890 Ozkan Demir Celik Sanayi A.S. 818 *EUR 1 = TRY 2.31 in 2012 Source: Istanbul Chamber of Industry, 2013 7 E. Market Outlook 2023 targets • USD 55 bn of exports • Crude steel production capacity: 85 mn tons • Crude steel production: 70 mn tons • Become the largest manufacturer in Europe • Share of Turkey in the world market: 4% • Increasing production and consumption of high quality steel • Becoming a net exporter in flat, special, structural and stainless steel, as well as in long steel Source: Dunya Newspaper, 2013 8 Confidentiality Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all information to be handled confidentially, especially regarding the sources used. Liability FMConsulting receives information and data from third parties and presents the gathered data to its customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or precision of any gathered data. Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.info
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