Steel Sector in Turkey[*]
Production
As the iron and steel industry supplies input to almost all manufacturing sectors, it plays an important role in the industrialization and development of Turkey. The foundations of the Turkish industrialization were laid in the 1930s. The first integrated Iron and Steel Works (KARDEMİR) began to operate in Karabuk in 1939, where Turkey produced raw steel for the first time. In order to meet the demand for flat products, the second integrated plant, Eregli Iron and Steel Works (ERDEMIR) started production in 1965. In 1977, Iskenderun Iron and Steel Works (ISDEMIR), Turkey’s third integrated steel mill, came on line to meet the demand for long products and semiproducts. As a result of liberalization in economic activities, takeover of ISDEMİR by ERDEMİR on condition that its conversion to flat products was the most important recent development in the Turkish steel sector. In 2002, privatization of ISDEMİR, which was the last state owned facility, is also important in that, Turkish steel industry is now entirely operated by the private sector.
Turkey's Melting Shop Capacity, Production and Capacity Utilization Rate (CUR), 2008Company / Capacity, tons / Production, tons / CUR, %
Asil Celik / 485,000 / 305,920 / 63
Cer Celik / 850,000 / 556,876 / 66
Cebitas / 750,000 / 491,575 / 66
Cemtas / 172,000 / 120,797 / 70
Colakoglu / 3,171,300 / 2,372,345 / 75
Cukurova / - / - / -
Diler / 1,500,000 / 1,246,923 / 83
Ege Celik / 2,000,000 / 1,204,458 / 60
Ege Metal / - / - / -
Ekinciler / 1,000,000 / 847,011 / 85
Erege / 720,000 / 539,247 / 75
Habas / 3,200,000 / 2,671,569 / 83
Icdas / 5,267,600 / 3,647,742 / 69
Ilhan / 200,000 / 97,103 / 49
Izmir D.C. / 1,320,000 / 1,119,207 / 85
Kaptan / 1,140,000 / 994,279 / 87
Kroman / 1,250,000 / 1,035,150 / 83
MKEK / 60,000 / 7,694 / 13
Nursan / 800,000 / 686,507 / 86
Sidemir / 450,000 / 331,737 / 74
Yazıcı / 1,000,000 / 950,288 / 95
Yesilyurt / 720,000 / 545,033 / 76
EF Total* / 26,055,900 / 19,771,461 / 76
Erdemir / 3,300,000 / 3,123,670 / 95
Isdemir / 3,500,000 / 2,851,448 / 81
Kardemir / 1,235,000 / 1,059,306 / 86
Integrated Total / 8,035,000 / 7,034,424 / 88
Toplam (Total) / 34,090,900 / 26,805,885 / 79
* EF: Contains EAF and IF
Source: Turkish Iron & Steel Producers Association (
At present, the Turkish steel industry has 22 facilities with electric arc furnaces (EAF) and induction furnaces (IF), with a total melting shop capacity of over 26 million tons per year and three integrated works (KARDEMIR, ERDEMIR, ISDEMIR), with a total production capacity of nearly 8 million tons per year. In 2008, Turkey had a long crude steel production capacity of 28.4 million tons, flat crude steel production capacity of 11.3 million tons and special crude steel production capacity of 717 thousand[†].
Crude steel production in Turkey rose to 26.8 million tons and Turkey maintained its position as the 11th largest steel producing country in the world in 2008. By product type, 83% of the total steel production was directed to long products, about 15% was for flat products and 2% was for special steel in 2008. In terms of the production processes, 74% of the crude steel was produced in electric arc furnaces and induction furnaces, whereas 26% was produced in basic oxygen furnaces (BOF). Turkey’s share in the world crude steel production rose to 2% in the same year.
Crude Steel Production of Turkey as per Product Types, 2000-2008, 000 tons2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / % change (08/07) / CAGR%*
Long / 11,597 / 11,718 / 13,250 / 14,859 / 17,084 / 17,492 / 19,830 / 21,505 / 22,217 / 3.3 / 8.5
Flat / 2,388 / 2,962 / 2,888 / 3,088 / 3,031 / 3,095 / 3,135 / 3,726 / 4,154 / 11.5 / 7.2
Special / 340 / 301 / 329 / 352 / 363 / 377 / 472 / 523 / 435 / -16.8 / 3.1
TOTAL / 14,325 / 14,981 / 16,467 / 18,299 / 20,478 / 20,964 / 23,437 / 25,754 / 26,806 / 4.1 / 8.1
*Compound annual growth rate between 2000 and 2008
Source: Turkish Iron & Steel Producers Association (
Crude Steel Production of Turkey as per Production Methods, 2000-2008, 000 tons2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / % change (08/07) / CAGR %**
EF* / 9,096 / 9,703 / 11,334 / 12,546 / 14,646 / 14,847 / 17,252 / 19,362 / 19,772 / 2.1 / 10.2
BOF / 5,229 / 5,278 / 5,133 / 5,753 / 5,832 / 6,117 / 6,185 / 6,392 / 7,034 / 10.0 / 3.8
TOTAL / 14,325 / 14,981 / 16,467 / 18,299 / 20,478 / 20,964 / 23,437 / 25,754 / 26,806 / 4.1 / 8.1
* Contains EAF and IF
**Compound annual growth rate between 2000 and 2008
Source: Turkish Iron & Steel Producers Association (
Finished Product Production of Turkey, 000 tons2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007-actual / 2008- provisional / %change
(08/07) / %share-08 / CAGR %*
Long / 10,828 / 9,643 / 10,324 / 11,895 / 13,232 / 15,498 / 18,712 / 21,363 / 21,761 / 1.9 / 81,5 / 9.1
Flat / 3,130 / 2,957 / 3,144 / 3,535 / 3,616 / 3,760 / 3,903 / 4,257 / 4,541 / 6.7 / 17,0 / 4.8
Special / 309 / 273 / 299 / 320 / 330 / 343 / 429 / 475 / 395 / -16.8 / 1,5 / 3.1
TOTAL / 14,267 / 12,873 / 13,767 / 15,750 / 17,178 / 19,601 / 23,044 / 26,095 / 26,697 / 2.3 / 100,0 / 8.1
*Compound annual growth rate between 2000 and 2008
Source: Turkish Iron & Steel Producers Association (
Consumption
Current production of flat products and special steel products in Turkey does not meet the entire domestic demand for these products. Therefore, there is a significant need for investment in these fields. Indeed, companies such as ArcelorMittal and Borusan, MMK and Atakas Group, Kibar Holding, ERDEMIR, Colakoglu Metalurji and Icdas are currently making large scale investments for flat product production.
Finished Product Consumption of Turkey, 000 tons2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007-
actual / 2008-
prov. / %change
(08/07) / %share-08 / CAGR
%*
Long / 6,533 / 3,993 / 4,930 / 6,205 / 6,676 / 8,598 / 9,888 / 11,520 / 9,670 / -16.1 / 45.3 / 5.0
Flat / 6,035 / 4,327 / 5,865 / 6,848 / 7,772 / 8,859 / 9,831 / 10,937 / 10,433 / -4.6 / 48.9 / 7.1
Special / 502 / 387 / 491 / 602 / 773 / 908 / 1,122 / 1,258 / 1,236 / -1.7 / 5.8 / 11.9
TOTAL / 13,070 / 8,707 / 11,286 / 13,655 / 15,221 / 18,365 / 20,841 / 23,715 / 21,339 / -10.0 / 100.0 / 6.3
*Compound annual growth rate between 2000 and 2008
Source: Turkish Iron & Steel Producers Association (
Per Capita Crude Steel Consumption of Turkey, kg1996 / 1997 / 1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / CAGR %*
174 / 192 / 203 / 178 / 202 / 137 / 170 / 208 / 227 / 269 / 304 / 358 / 319 / 5.2
*Compound annual growth rate between 1996 and 2008
Source: Turkish Iron & Steel Producers Association (
Foreign Trade
Main steel products exported by Turkey are long products (76%), billet & blooms (14%) and flat products (8%). Main destination for Turkish steel exports in 2008 was the U.A.E. 94% of the Turkish steel exports to the U.A.E. was composed of long products.
Steel Exports of Turkey, 2008Product Group / Top 5 Countries and % share in total
7201 / tons / tons / %share
Pig iron / 10,372 / ITALY / 7,346 / 70.8
IST. LEATHER FREE ZONE / 1,228 / 11.8
PAKISTAN / 600 / 5.8
AEGEAN FREE ZONE / 210 / 2.0
TURKMENISTAN / 201 / 1.9
OTHER / 787 / 7.6
TOTAL / 10,372 / 100.0
7204 / tons / tons / %share
Scrap / 77,654 / NETHERLANDS / 28,239 / 36.4
CHINA / 16,158 / 20.8
SPAIN / 9,404 / 12.1
UK / 8,991 / 11.6
INDIA / 4,519 / 5.8
OTHER / 10,343 / 13.3
TOTAL / 77,654 / 100.0
7206 / tons / tons / %share
Ingots / 63 / AEGEAN FREE ZONE / 27 / 42.9
GERMANY / 19 / 30.2
LIBYA / 6 / 9.5
SWITZERLAND / 5 / 7.9
MACEDONIA / 4 / 6.3
OTHER / 2 / 3.2
TOTAL / 63 / 100.0
7207 * / tons / tons / %share
Billet, Bloom / 2,354,881 / SAUDI ARABIA / 473,026 / 20.1
MOROCCO / 361,864 / 15.4
UNITED ARAB EMIRATES / 324,703 / 13.8
KUWAIT / 209,557 / 8.9
EGYPT / 156,050 / 6.6
OTHER / 829,681 / 35.2
TOTAL / 2,354,881 / 100.0
7207 (7207.12;
720720.32; 7207.2039) / tons / tons / %share
Slab / 94,286 / IRAN / 77,701 / 82.4
UNITED ARAB EMIRATES / 9,900 / 10.5
BULGARIA / 4,760 / 5.0
MALAYSIA / 1,578 / 1.7
ROMANIA / 288 / 0.3
OTHER / 59 / 0.1
TOTAL / 94,286 / 100.0
7208-7212 / tons / tons / %share
Flat products / 1,337,461 / ROMANIA / 220,187 / 16.5
USA / 194,794 / 14.6
GREECE / 119,638 / 8.9
SPAIN / 79,085 / 5.9
ITALY / 78,238 / 5.8
OTHER / 645,519 / 48.3
TOTAL / 1,337,461 / 100.0
7213-7217 / tons / tons / %share
Long products / 12,832,693 / UNITED ARAB EMIRATES / 5,466,718 / 42.6
QATAR / 555,161 / 4.3
IRAQ / 466,894 / 3.6
ROMANIA / 443,655 / 3.5
USA / 439,121 / 3.4
OTHER / 5,461,144 / 42.6
TOTAL / 12,832,693 / 100.0
7218-7229 / tons / tons / %share
Special steels / 183,470 / GERMANY / 41,799 / 22.8
ITALY / 26,719 / 14.6
EGYPT / 13,050 / 7.1
AUSTRIA / 12,109 / 6.6
ROMANIA / 8,798 / 4.8
OTHER / 80,995 / 44.1
TOTAL / 183,470 / 100.0
Other 72 / tons / tons / %share
Others / 67,604 / NETHERLANDS / 25,838 / 38.2
GERMANY / 15,541 / 23.0
ITALY / 7,836 / 11.6
SPAIN / 3,310 / 4.9
TAIWAN / 2,257 / 3.3
OTHER / 12,822 / 19.0
TOTAL / 67,604 / 100.0
Total 72 / tons / tons / %share
Total / 16,958,484 / UNITED ARAB EMIRATES / 5,806,798 / 34.2
SAUDI ARABIA / 737,586 / 4.3
ROMANIA / 682,080 / 4.0
QATAR / 679,267 / 4.0
USA / 639,682 / 3.8
OTHER / 8,413,071 / 49.6
TOTAL / 16,958,484 / 100.0
* Billet -Bloom-7207 (except 7207.12; 7207.20.32; 7207.20.39)
Source: Turkish Iron & Steel Producers Association (
Main steel products imported by Turkey are scrap (55%), flat products (23%), billet & blooms (10%) and special steel (3%). Main origins of Turkish steel imports in 2008 were Russia, USA and Ukraine.
Steel Imports of Turkey, 2008Product Group / Top 5 Countries and % share in total - 2008
7201 / tons / tons / %share
Pig iron / 802,741 / UKRAINE / 440,518 / 54.9
RUSSIA / 327,500 / 40.8
BULGARIA / 12,644 / 1.6
CANADA / 10,505 / 1.3
SOUTH AFRICA / 5,500 / 0.7
OTHER / 6,074 / 0.8
TOTAL / 802,741 / 100.0
7204 / tons / tons / %share
Scrap / 17,414,983 / USA / 5,044,516 / 29.0
RUSSIA / 2,205,628 / 12.7
UK / 1,823,410 / 10.5
ROMANIA / 1,431,163 / 8.2
NETHERLANDS / 1,117,388 / 6.4
OTHER / 5,792,878 / 33.3
TOTAL / 17,414,983 / 100.0
7206 / tons / tons / %share
Ingots / 12,371 / UKRAINE / 11,814 / 95.5
GERMANY / 526 / 4.3
IRAN / 23 / 0.2
SPAIN / 6 / 0.0
USA / 1 / 0.0
OTHER / 1 / 0.0
TOTAL / 12,371 / 100.0
tons / tons / %share
7207* / 2,986,495 / UKRAINE / 1,250,393 / 41.9
Billet, Bloom / RUSSIA / 1,240,394 / 41.5
CHINA / 103,386 / 3.5
SPAIN / 45,304 / 1.5
GREECE / 42,089 / 1.4
OTHER / 304,929 / 10.2
TOTAL / 2,986,495 / 100.0
7207
(7207.12; 720720.32; 7207.20.39) / tons / tons / %share
Slab / 844,489 / RUSSIA / 806,751 / 95.5
NETHERLANDS / 20,834 / 2.5
ITALY / 10,090 / 1.2
GREECE / 4,980 / 0.6
BULGARIA / 1,268 / 0.2
OTHER / 566 / 0.1
TOTAL / 844,489 / 100.0
7208-7212 / tons / tons / %share
Flat products / 7,229,391 / UKRAINE / 1,994,882 / 27.6
RUSSIA / 1,679,609 / 23.2
ROMANIA / 854,135 / 11.8
BELGIUM / 344,373 / 4.8
CHINA / 340,673 / 4.7
OTHER / 2,015,719 / 27.9
TOTAL / 7,229,391 / 100.0
7213-7217 / tons / tons / %share
Long products / 742,412 / SPAIN / 175,977 / 23.7
GERMANY / 111,840 / 15.1
UKRAINE / 94,387 / 12.7
ITALY / 71,464 / 9.6
ROMANIA / 53,030 / 7.1
OTHER / 235,714 / 31.7
TOTAL / 742,412 / 100.0
7218-7229 / tons / tons / %share
Special steels / 1,023,631 / FRANCE / 281,888 / 27.5
RUSSIA / 139,595 / 13.6
GERMANY / 117,249 / 11.5
CHINA / 87,909 / 8.6
ITALY / 52,764 / 5.2
OTHER / 344,226 / 33.6
TOTAL / 1,023,631 / 100.0
Other 72 / tons / tons / %share
Others / 493,325 / UKRAINE / 207,739 / 42.1
RUSSIA / 108,192 / 21.9
CHINA / 75,051 / 15.2
GEORGIA / 27,583 / 5.6
INDIA / 14,800 / 3.0
OTHER / 59,960 / 12.2
TOTAL / 493,325 / 100.0
Total 72 / tons / tons / %share
Total / 31,549,836 / RUSSIA / 6,521,603 / 20.7
USA / 5,068,726 / 16.1
UKRAINE / 4,429,605 / 14.0
ROMANIA / 2,372,947 / 7.5
UK / 1,949,567 / 6.2
OTHER / 11,207,388 / 35.5
TOTAL / 31,549,836 / 100.0
* Billet-Bloom-7207 (except 7207.12; 7207.20.32; 7207.20.39)
Source: Turkish Iron & Steel Producers Association (
Scrap Imports and Consumption of Turkey
Due to the rapidly increasing production volume of the electric arc furnaces, Turkey has become one of the biggest steel scrap importers of the world.
Scrap Imports of Turkey as per Regions2007-actual / 2008-provisional / %change (08/07) / %share (08) / price ($/ton)
tons / 1000$ / tons / 1000$ / quantity / value / quantity / value / 2007 / 2008
EU (27) / 7,318,934 / 2,409,080 / 7,558,325 / 3,628,480 / 3.3 / 50.6 / 43.4 / 40.5 / 329 / 480
USA / 3,949,644 / 1,279,883 / 5,044,516 / 2,718,525 / 27.7 / 112.4 / 29.0 / 30.3 / 324 / 539
Russia / 3,443,898 / 1,132,476 / 2,205,628 / 1,227,001 / -36.0 / 8.3 / 12.7 / 13.7 / 329 / 556
Ukraine / 503,063 / 160,468 / 423,359 / 233,643 / -15.8 / 45.6 / 2.4 / 2.6 / 319 / 552
Georgia / 529,053 / 170,389 / 403,419 / 227,577 / -23.7 / 33.6 / 2.3 / 2.5 / 322 / 564
Others / 1,396,263 / 439,585 / 1,779,736 / 925,983 / 27.5 / 110.6 / 10.2 / 10.3 / 315 / 520
Total / 17,140,855 / 5,591,881 / 17,414,983 / 8,961,209 / 1.6 / 60.3 / 100.0 / 100.0 / 326 / 515
Source: Turkish Statistical Institute (www.turkstat.gov.tr) and Turkish Iron & Steel Producers Association (
2004 / 2005 / 2006 / 2007 / 2008 / CAGR %*Total Crude Steel Production (tons) / 20,478,093 / 20,964,634 / 23,437,000 / 25,754,000 / 26,805,885 / 7.0
EAF / 14,645,748 / 14,847,243 / 17,252,000 / 19,362,000 / 19,771,461 / 7.8
BOF / 5,832,345 / 6,117,391 / 6,185,000 / 6,392,000 / 7,034,424 / 4.8
Total Scrap Consumption (tons) / 17,248,279 / 17,581,570 / 20,201,170 / 22,578,460 / 22,944,459 / 7.4
EAF / 16,256,780 / 16,480,440 / 19,149,720 / 21,491,820 / 21,748,607 / 7.5
BOF / 991,499 / 1,101,130 / 1,051,450 / 1,086,640 / 1,195,852 / 4.8
Total Scrap Imports (tons) / 12,892,548 / 13,160,689 / 15,074,009 / 17,115,875 / 17,414,983 / 7.8
Domestic Scrap (tons) / 4,355,731 / 4,420,881 / 5,127,161 / 5,462,585 / 5,529,476 / 6.1
*Compound annual growth rate between 2004 and 2008.
Source: Turkish Iron & Steel Producers Association (
Induction Furnaces in Turkey
Main steel producers using induction furnaces in Turkey are listed in the table below:
Company / City / PhoneIlhan Metalurji / Osmaniye / +90 328 826 8245
Mega Demir Mamulleri / Hatay / +90 326 755 97 00
Bilecik Demir Celik (production will start in July 2009) / Bilecik / +90 212 244 60 00
Besa Haddecilik / Karabuk / +90 370 424 73 07
http://www.invest.gov.tr1
[*] Sources: Turkish Iron & Steel Producers Association ( and Undersecretariat for Foreign Trade – Export Promotion Center (www.igeme.gov.tr)
[†] The difference between total melting shop and total crude steel production capacities results from some companies' ability to produce both slab and billet at their existing capacity and facilities.