Operational Decline at Orhangazi Steel Plant Amidst Market Fluctuations

Introduction: The Asil Celik Orhangazi steel plant, located in Bursa, Türkiye, produces high-quality crude and semi-finished steel products with an annual capacity of 550,000 tonnes. Owned by Asil Çelik, the facility serves key end-user sectors including energy, infrastructure, transport, and automotive, but is currently facing operational challenges.

Activity Trends Over Time:

The plant’s activity has observed a significant decline, with thermal performance from its Electric Arc Furnaces dropping steadily over the past six months. Here is a breakdown of the thermal activity, showing the percentage utilization of key equipment:

The overall activity declined by approximately 7.97%, primarily due to fluctuations in production stemming from broader market pressures. Despite a month-on-month increase of 7% in Turkey’s overall steel production in March 2025, the trend in Orhangazi reflects a distinct downturn, mirroring industry challenges such as those reported in Turkey reduced steel production by 8.7% m/m in February.

Implications for Steel Buyers and Market Analysts:

For steel buyers, the decreased operational activity at Orhangazi signals potential supply constraints amid increasing competition and an uncertain market outlook. As the industry experiences fluctuating demand—projected to decline by 1.7% in 2025 according to Turkey increased steel production by 7% m/m in March—there could be price risks and shortages. Analysts should monitor these developments closely to anticipate further operational implications and shifts in market dynamics.