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| Turkey steel production |
Turkish Steel Industry Shows Strong Monthly Growth Despite Annual Challenges
Turkey’s steel production surged by 10.2% month-on-month (m/m) in July 2025, reaching 3.18 million tons. This growth follows a 4.2% year-on-year (y/y) increase compared to July 2024, according to the World Steel Association. The Turkish steel sector’s monthly rebound highlights its resilience amid fluctuating global demand and competitive pressures from Asian producers. However, overall steel output for January-July 2025 contracted slightly by 0.9% y/y, totaling 21.48 million tons, reflecting ongoing market volatility.
Pig iron production in Turkey increased by 11.9% m/m in July but declined by 9.3% y/y to 781,000 tons. This divergence signals short-term recovery trends against longer-term challenges. During the first seven months, pig iron output fell 12.5% y/y to 5.29 million tons, which may influence raw material supply chains for Turkish steelmakers. Despite these declines, the 2024 annual performance was robust; steel production rose 9.4% y/y to 36.89 million tons, and pig iron production grew 17.2% y/y to 10.19 million tons.
The steel industry's growth in 2024 stemmed from several factors. Infrastructure investments, especially earthquake recovery projects, drove domestic demand. Export expansion amidst global market shifts and capacity modernization also contributed positively. Nevertheless, challenges persist. Unstable global demand and Asian competition constrain Turkey’s steel output growth. WorldSteel forecasts a 1.7% drop in steel demand in 2025 to 35.5 million tons. Yet, government investment in environmental technologies and regional market diversification may support moderate gains despite geopolitical and raw material price risks.
ScrapInsight Commentary
Turkey’s steel production recovery in July signals resilience but masks annual headwinds. Government infrastructure spending and modernization efforts could underpin growth. However, global demand uncertainty and input cost volatility require cautious market monitoring through 2025.
