Turkey – The World Steel Association predicts a decline in crude steel demand in Türkiye with an expected drop of 5.5 percent in 2024 reducing the total demand down to 36 million tons from the previous year. The association’s report further projects, that a 1.4 percent decrease in 2025 brings demand down to 35.5 million tons.
Crude steel demand has been observing a surge between 2022 to 2023 with an increase of 17. 2 percent, reaching 38.1 million tons. World Steel has been predicting a 0.9 percent decline in global steel demand for 2024, reflecting a broader in the global steel industry. The report says that Global demand is expected to pick up 1.2 percent next year, according to the association.
The year “2024 has been a difficult year for global steel demand as the global manufacturing sector continued to grapple with persistent headwinds such as declining household purchasing power, aggressive monetary tightening, and escalating geopolitical uncertainties,” commented Martin Theuringer, chair of the world steel economics committee.
“The ongoing weakness in housing construction, which is driven by tight financing conditions and high costs, has further contributed to the sluggish demand for steel,” he added.
Factors pertaining to the economy of Turkey influence the steel market: a monetary tightening that began in June 2023. The Turkish Central Bank is presently maintaining a policy interest rate of 50 percent against the backdrop of a decline in annual inflation to below 50 percent last month. Although annual inflation dropped to 49.3 percent last month, the government expects further declines in the coming months.
Demand in the housing market has been weak throughout 2024. Home sales saw a consistent decline in five months between January and August, Reported by Hurriyet News.