KIEV (Scrap Monster): Increased capacity addition in flat steel products will be the key to steel production growth from now to 2015, according to an assessment by Colakogulu Metalurji's CEO Ugur Dalbeler at an industry conference here which began on Monday. Turkey's electric arc furnaces are diversifying from mainstay reinforcing bar, wire rod and billet products.
The nation's annual hot metal production capacity may grow by 6.7% year on year to 46.3 million mt/year in 2011, and reach 51.2 million mt/year by 2013, Platts.com reported.
Much of the growth in hot metal will serve flat-rolled steel as capacity dedicated to its production increases 43% to 19.2 million mt by 2014 from 13.4 million mt in 2010, it said. The rate outstrips the 6.9% growth to 38.6 million mt/year in 2014 earmarked for long product capacity.
Much of the hot metal expansions will come from EAF plants, rising to 35.7 million mt in 2011 and exceeding 40 million mt as early as 2013, up from 2010's 34.1 million mt, it said.
Integrated blast furnace-related melting capacity will top out at 11.3 million mt from 2013, from 9.4 million mt in 2010, based on his five year forecast.
Dalbeler, who heads an EAF mill that diversified into hot-rolled coil production last year, is also vice president of the Turkish Iron and Steel Producers Association and chairman of Irepas.
Turkey's ferrous scrap consumption in 2011 is expected at 28 million mt, of which 21.3 million mt will comprise imported, up from the 25.3 million mt total and 19.2 million imported over 2010, his presentation said.
Scrap imports by source in 2010 were led by the EU-27 with a 55% share, of which Romania was the biggest constituent, followed by the US at 22%, Russia with 8% and Ukraine and Georgia with 3% and 2% respectively.
By country, Romania accounted for a 12% share of the total, behind the US and ahead of the Netherlands (9%), and the UK, Belgium and Russia with 8% apiece, the presentation said.
Turkey reported a 36% annual increase in crude steel output in February, as flat-rolled production capacity from local mills Colakoglu and Toscelik was inaugurated last year.
Russia's Magnitogorsk Iron & Steel Works, or MMK, earlier this year commissioned an EAF mill in Iskenderun, expecting production at a rate of over 800,000 mt/year by this year of flat coil steels, including galvanizing and color coating lines to help industry substitute imports.
The Erdemir group produces flat steel from integrated plants in Eregli and Iskenderun