During the "New Horizons in Global Steel Markets" 11th Annual Conference organized by SteelOrbis in Istanbul on November 17, Mehmet Zeren, general secretary of Turkey's Steel Pipe Manufacturers Association (ÇEBİD), stated that Turkey’s steel pipe output has increased over the last 10 years. Recorded at 2.25 million mt in 2005, Turkey’s steel pipe production had doubled by 2015 to 4.52 million mt. In 2016, Turkey’s steel pipe production is expected to increase by 10 percent year on year, supported by the recent rise in demand. According to Mr. Zeren, the increases in Turkey’s steel pipe demand in 2015 and 2016 have been mostly supported by the Trans-Anatolian Pipeline Project (TANAP), with 1.2 million mt of steel pipe to be used for this project, including 950,000 mt of steel pipe supplied by Turkish mills.
Supported by demand and the global economic situation, Turkey exports 40 percent of its steel pipe production. However, in the first nine months of this year Turkey’s steel pipe exports declined by 6.6 percent year on year, mostly because of the decreases in exports to the US. The reasons for the drop in Turkey’s steel pipe exports to the US are the countervailing duties against steel pipe imports from Turkey and the weakening of steel pipe demand in the US as shale gas production in the country has almost ground to a halt due to decreasing crude oil prices, according to Mr. Zeren. Also, the US authorities state that Turkish steel pipe producers are using local mill Erdemir’s products as feedstock in their production, pointing out that Erdemir is a public enterprise and thereby alleging that Turkey’s steel pipe exports benefit from subsidies.
In early October this year, the Turkish authorities announced antidumping (AD) duties against hot rolled coil (HRC) imports from four countries, while Turkey implements a nine percent customs duty on imported HRC. Mr. Zeren stated that domestic HRC prices have moved upwards because of these factors, adding that the customs duty should be removed in order to restrict the increases in domestic HRC prices. He said that Turkish steel pipe producers want to meet their HRC needs from their domestic market, but they want domestic HRC prices to be close to global prices.
Answering a question regarding new projects that may impact steel demand coming from the pipe industry, Mr. Zeren mentioned a new project with Russia in which steel pipes will mostly be laid underwater, while 400 km of the pipeline will be in Turkish waters and territory. This is expected to support steel demand in Turkey. Mr. Zeren also stated that there are also ongoing drinking water and gas projects in the country