With a steel production of 35.8 million tons, Turkey ranks seventh in the world and is among the leading countries. While the negative effects of the COVID-19 pandemic were being felt, Turkey managed to increase its steel production by 6% compared to the previous year, reaching 35.8 million tons by 2020. This was the third highest increase among the 10 largest steel producers, just behind Iran (13%) and China (7%).

The share of European Union member countries in Turkey’s steel exports reached 40% in 2020. This share increased from an average of 16% in the 2010-2016 period to 25% in the 2017-2020 period. On the EU side, Turkey accounts for 12% of the EU’s steel imports and is the market for 20% of its exports.

While 70.7% of global steel is produced by BOF (blast furnace-basic oxygen furnace) based on coal, Turkey’s steel production capacity is 75% EAF (electric arc furnaces based on scrap steel) and this structure is seen as an advantage in the transition of the Turkish steel sector to low carbon. Thus, Turkey is a carbon efficient steel producer compared to other major steel exporters in the European Union. The carbon intensity of Turkey’s steel production is roughly half the emissions of the EU’s other two major trading partners in the sector, China and Ukraine, thanks to its reliance on EAF for 75% of its production capacity.

Download (TR)

But despite all these favorable conditions,

The steel sector is among the priority sectors targeted by the Border Carbon Adjustment Mechanism under the European Green Deal. Considering that Turkey’s most important trading partner in the steel sector is the EU, Turkey is likely to lose its advantageous position if a planned decarbonization path is not followed.

Despite Turkey’s advantage in average steel production, there are still producers that need to transform on a plant basis. In iron and steel plants operating in Turkey, it is observed that the capacity utilization rates of iron and steel production plants with integrated BOF technology are higher than those of plants with EAF technology.

The findings of the report also show that;

In order for the Turkish steel industry to maintain its strong position and become a leader, a comprehensive transformation plan should be planned and implemented consistently by all stakeholders. The process in which the sector will maintain its advantage should be used to develop and implement a comprehensive transformation plan.

Share on Social Media