The Turkish steel industry has been through a roller coaster ride in recent months. In September 2022, the Turkish government increased energy prices, which caused a sharp drop in steel production. The industry was already struggling due to the global economic slowdown, and the price hike was the final straw for many producers.
In an effort to boost the domestic steel industry, the Turkish government announced in January 2023 that it would be reducing natural gas prices by 13.3-17.2% compared to last October. The price cut went into effect on February 1, and the government has hinted that it may reduce prices further in March.
The price cut is expected to have a significant impact on the Turkish steel industry. It will lower production costs, which will make Turkish steel more competitive in the export market. The price cut is also expected to create jobs and boost economic growth.
However, there are some concerns about the long-term impact of the price cut. Some experts worry that it will lead to increased energy consumption and environmental problems. Others worry that it will make Turkish steel mills more reliant on government subsidies.
Only time will tell how the price cut will impact the Turkish steel industry. However, in the short term, it is clear that the price cut will give Turkish steel producers a much-needed boost.