Iron-Steel Sector 2023
Iron-Steel Sector 2023 Panorama
The iron and steel sector closed 2023 by fitting two different stories into the same calendar. Worldwide, production stayed almost flat while the volume of international trade grew. In Türkiye, by contrast, production fell, while domestic consumption rose by double digits.
This article is a panorama that gathers the whole year into a single frame. First Türkiye, then the world — handled through figures at the level of production, exports, imports and product groups. We then look at the developments that shaped the sector, the year’s event calendar, and the giant projects that put steel on the agenda.
Production in Türkiye
According to the Turkish Steel Producers’ Association (TÇÜD), Türkiye’s crude steel production fell 4% in 2023 to 33.7 million tonnes. This was the second year of decline since the all-time record of 40.4 million tonnes set in 2021.
While production fell, consumption moved in the opposite direction. Finished product consumption rose 17.1% to 38.1 million tonnes. Long product consumption climbed 21% to 18.6 million tonnes.
| Türkiye – Production and Consumption (2023) | Volume | Change |
|---|---|---|
| Crude steel production | 33.7 million tonnes | −4% |
| Finished product consumption | 38.1 million tonnes | +17.1% |
| Long product consumption | 18.6 million tonnes | +21% |
| 2021 record (for comparison) | 40.4 million tonnes | — |
Exports and Imports in Türkiye
Türkiye’s steel product exports fell 30.6% in volume and 40.7% in value in 2023, to 10.5 million tonnes and 8.3 billion dollars. Imports, meanwhile, rose 15.5% in volume to 17.1 million tonnes, while falling 6.1% in value to 14.6 billion dollars.
| Türkiye – Steel Product Trade (2023) | Volume | Value | Change (volume) |
|---|---|---|---|
| Exports | 10.5 million tonnes | USD 8.3 billion | −30.6% |
| Imports | 17.1 million tonnes | USD 14.6 billion | +15.5% |
Under the broader iron-and-steel definition — which also covers semi-finished goods and raw materials — annual exports came in at around 17.8 billion dollars and imports at around 18.1 billion dollars.
For a sense of scale: according to the Republic of Türkiye Ministry of Trade, Türkiye’s total exports in 2023 were 255.8 billion dollars, total imports 361.8 billion dollars, and total foreign trade volume 617.7 billion dollars. Iron and steel remained one of the load-bearing sectors of this picture.
Product-by-Product Volumes: Türkiye
The character of Türkiye’s steel trade becomes clear at the product-group level. Exports are concentrated in long products aimed at the construction and building sector, while imports are led by semi-finished and flat products.
Exports – product group breakdown:
| Product group | Scope | Position in 2023 exports |
|---|---|---|
| Long products | Rebar (ribbed bar), profiles, wire rod | Largest group |
| Flat products | Hot-rolled coil (HRC), cold-rolled coil (CRC), galvanized/coated sheet | Second |
| Pipes | Welded and seamless steel pipe | Third |
| Billet and slab (semi-finished) | Semi-finished steel | ~1.3% |
| Fasteners | Bolts, nuts, rivets | ~1.2% |
A concrete example on the pipe side: welded steel pipe exports fell 13.5% in volume in the first half of the year, to 929,500 tonnes and 927.7 million dollars.
Imports – product group breakdown
On the import side the picture reverses. Semi-finished goods (slab, billet) that feed production stand out as the main item, while in flat products a significant share of domestic demand has been met by imports for years. The main drivers of the 2023 increase in imports were also semi-finished and long product inflows.
On the supply side, Russia held on to first place for the fourth year running. Imports from Ukraine, meanwhile, rose 2.6-fold to 486,000 tonnes and around 430 million dollars.
Where Did Türkiye Sell the Most?
According to the Turkish Steel Exporters’ Association (ÇİB), the largest market in 2023 was the European Union at 4.5 million tonnes.
| Region / Country | 2023 exports |
|---|---|
| European Union | 4.5 million tonnes |
| Near and Middle East | 3.3 million tonnes |
| Other European countries | ~2 million tonnes |
| Top country | Israel – USD 717 million |
| Second | Romania – USD 551 million |
| Third | Italy – USD 478 million |
Production in the World
World crude steel production fell 0.1% year-on-year in 2023, to around 1.85 billion tonnes. China was once again at the top; but the year’s standout story was India’s double-digit growth.
| Rank | Country | 2023 crude steel production (approx.) | Note |
|---|---|---|---|
| 1 | China | ~1 billion tonnes | More than half of world production |
| 2 | India | ~140 million tonnes | +12.2% |
| 3 | Japan | ~87 million tonnes | −2.5% |
| 4 | USA | ~81 million tonnes | Flat |
| 5 | Russia | ~76 million tonnes | +6% |
| 6 | South Korea | ~67 million tonnes | +1.3% |
| 7 | Germany | ~35 million tonnes | −3.9% |
| 8 | Türkiye | 33.7 million tonnes | −4% |
| 9 | Brazil | ~32 million tonnes | — |
| 10 | Iran | ~31 million tonnes | +1.5% |
Exports and Imports in the World
While production stayed flat, trade grew. World steel exports rose 6.5% in 2023 to 402.8 million tonnes. Total cross-border steel trade came in at around 435 million tonnes. In other words, roughly a quarter of the steel produced crossed at least one border before being consumed.
Largest exporters:
| Rank | Country / Region | 2023 exports |
|---|---|---|
| 1 | China | 94.3 million tonnes |
| 2 | Japan | 32.2 million tonnes |
| 3 | South Korea | 27.0 million tonnes |
| 4 | European Union | 26.0 million tonnes |
| 5 | Germany | 22.5 million tonnes |
Largest importers:
| Rank | Country / Region | 2023 imports |
|---|---|---|
| 1 | European Union | 39.2 million tonnes |
| 2 | USA | 26.4 million tonnes |
| 3 | Germany | 18.7 million tonnes |
| 4 | Italy | 18.7 million tonnes |
| 5 | Türkiye | 18.0 million tonnes |
Product-by-Product Volumes: World
The product-based breakdown of world steel exports shows directly which products global demand concentrated on.
| Product group | 2023 world exports | Annual change |
|---|---|---|
| Hot-rolled sheet and coil (HRC) | 75.6 million tonnes | +11.2% |
| Semi-finished goods (slab, billet) | 53.2 million tonnes | +19.2% |
| Galvanized steel | 41.0 million tonnes | +6.8% |
| Steel pipe and rebar | 36.5 million tonnes | +6.7% |
| Cold-rolled sheet and coil (CRC) | 30.3 million tonnes | −1.6% |
| Railway rail and parts | ~2.9 million tonnes | — |
The most striking row in the table is semi-finished goods. The 19.2% increase shows that the world is increasingly moving slab and billet across borders and carrying out the final processing in the consuming region.
Türkiye’s Place in the World
Putting the figures together, Türkiye’s place in the 2023 picture can be summarized as follows:
| Indicator | Türkiye’s position |
|---|---|
| Crude steel production | 8th in the world, largest in Europe |
| Production volume | 33.7 million tonnes (~1.8% of world output) |
| Steel imports | Among the world’s top 5 importers (18 million tonnes) |
| Export markets | Concentrated in the EU and the Near and Middle East |
| Leading export product | Long products (rebar, profiles, wire rod) |
This picture makes Türkiye both a major producer and one of the world’s largest steel buyers. This dual position — between production strength and domestic demand — was the year’s most defining structural theme.
The Impact of Domestic Developments on the Sector
The February 6 Earthquakes and Reconstruction
The main factor driving domestic demand in 2023 was the reconstruction activity that began after the Kahramanmaraş-centered earthquakes. This was the main reason long product consumption rose 21% to 18.6 million tonnes. Demand for rebar, steel mesh and profiles stayed strong throughout the year.
Growing Interest in Steel Structures
Steel-framed structures that performed well in the earthquakes increased interest in steel construction across the sector. This became an agenda item not only for 2023 but for the years that followed.
Housing Projects
Large-scale housing programs announced during the year gave additional momentum to construction steel demand. Sector representatives noted that the roughly 20 million tonnes of construction steel and 18 million tonnes of flat steel capacity were sufficient to meet this demand.
Energy and Input Costs
High energy costs remained a pressure on the production side throughout the year and limited capacity utilization.
The Impact of Global Developments on the Sector
The CBAM transition period began. The European Union’s Carbon Border Adjustment Mechanism (CBAM) entered into force with its transition period on 1 October 2023. Iron and steel was among the leading sectors covered by the mechanism. During the transition period, importers were required only to report embedded carbon emissions; the first reporting period ended on 31 January 2024. Financial obligations will come into effect from 2026. This regulation turned the carbon footprint into a measurable trade parameter for every producer exporting to the EU.
China’s export volume. China’s 94.3 million tonnes of exports were the main driver of global price competition throughout the year and created price pressure in many markets.
Weak demand in Europe. Stagnation in steel-intensive sectors such as construction and automotive, combined with high energy prices, limited demand in the European market. While Germany’s production fell 3.9%, the EU retained its position as the world’s largest steel importer that year, at 39.2 million tonnes.
Green transformation. Electric arc furnace investments and low-carbon production were the year’s most-discussed investment theme in the sector.
Steel Service Centers
Steel service centers form the bridge between production and the end user. Around 100 steel service centers operate in Türkiye, and the total processing capacity of these facilities has passed 11 million tonnes.
Some of the centers work for the automotive sector and some for the white goods sector. A significant share provide general-purpose services. Through operations such as cutting, slitting, cut-to-length and packaging, flat and long products are brought to the dimensions and quality that industry requires. Because the tendency for companies to set up their own centers continues, total capacity at times exceeds demand.
The 2023 Event Calendar
After the pandemic period, the sector calendar filled up again in 2023.
Metal Expo Eurasia 2023. The fifth edition was held on 27-30 September 2023 at the Istanbul Expo Center. The fair was recognized as an international fair by UFI, the global association of the exhibition industry. The STEEL MACHINES special section — aimed at the steel pipe production industry, automation, equipment and engineering — brought together heavy-industry machinery producers and industrial furnace and line manufacturers. Over four days, alongside conferences attended by institutional representatives from home and abroad, joint seminars and certificate programs were held with sector NGOs.
Trade delegations. Under the coordination of the Turkish Steel Exporters’ Association (ÇİB), numerous sectoral trade delegations were organized throughout the year. The Bulgaria, Romania, Belgium and Albania delegations hosted B2B meetings along a line stretching from the Balkans to the Benelux.
Symposiums and workshops. The tradition of the International Iron and Steel Symposium, together with workshops focused on green transformation, made up the year’s technical agenda.
Projects That Put Steel on the Agenda
Beyond the figures, 2023 was a year in which steel came onto the agenda through giant-scale projects.
Jeddah Tower stirred back to life. After roughly a five-year pause, activity resumed on the Jeddah Tower project in Saudi Arabia, planned to exceed 1,000 meters. In September 2023 a new tender was issued to complete the project. When finished, it is expected to surpass the 828-meter Burj Khalifa to become the world’s tallest building. The structure has a design that combines reinforced concrete and a steel load-bearing system.
The Line’s appetite for steel. Part of Saudi Arabia’s NEOM project and planned at 170 kilometers long, The Line was one of the most-discussed items on the construction agenda throughout 2023. The project’s scale is so vast that assessments later reported in the press suggested it could create demand for up to a fifth of the world’s available steel. The project plans to place more than 30,000 foundation piles.
Reconstruction in Türkiye. In Türkiye, meanwhile, the most steel in 2023 was consumed not by a single structure but by getting the earthquake region back on its feet. This mobilization, covering hundreds of thousands of structures, single-handedly shaped the year’s rebar demand.
A Summary Look at 2023
How much steel did Türkiye produce in 2023?
Crude steel production fell 4% to 33.7 million tonnes. Türkiye kept its position as the world’s 8th-largest and Europe’s largest producer.
How much was world steel production in 2023?
Global crude steel production fell 0.1% to around 1.85 billion tonnes.
How much steel was exported worldwide in 2023?
World steel exports rose 6.5% to 402.8 million tonnes. Total cross-border trade was around 435 million tonnes.
How much steel did Türkiye export and import in 2023?
Steel product exports were 10.5 million tonnes (8.3 billion dollars) and imports 17.1 million tonnes (14.6 billion dollars).
Which country is the world’s largest steel exporter?
China, with 94.3 million tonnes. It was followed by Japan (32.2 million tonnes) and South Korea (27 million tonnes).
When did CBAM enter into force?
The European Union’s Carbon Border Adjustment Mechanism began with its transition period on 1 October 2023. Financial obligations take effect in 2026.
Conclusion
The iron and steel sector 2023 panorama can be summed up in two sentences. Worldwide, production stalled while trade grew; steel crossed more borders. In Türkiye, production fell while domestic demand, together with post-earthquake reconstruction, rose by double digits.
Türkiye closed the year as the world’s 8th-largest producer at 33.7 million tonnes, and at the same time as one of its top 5 importers. CBAM’s entry into its transition period, meanwhile, will make the carbon footprint a direct parameter of trade in the years ahead. Entering 2024, the sector’s agenda is clear: efficiency, low-carbon production and a strong supply chain.
News Source
Çakıroğlu Group – Media Services
20/12/2023
