Namık Ekinci, chairman of the Turkish Steel Exporters Association (CIB), has commented on the decrease in Turkey's steel exports and on the measures needed to reverse this trend. Remarking that the Turkish steel industry is passing through hard times, Mr. Ekinci stated, "We need to increase the manufacture of high value-added technological products, to raise the volume of domestic input materials, and also to increase incentives for technological investments in order to lower unit costs. However, the agreement between Turkey and the European Union, which prohibits all sorts of incentives for the steel industry, is hampering our efforts. First of all, the articles of the agreement regarding the prohibition of incentives should be reviewed. Besides, we must remove the environmental contribution margin and other tax burdens, which place pressure on domestic steel producers. These burdens decrease the competitiveness of Turkish steel producers compared to their opponents in other countries. Turkish steel exporters do not want any help, just the removal of the burdens that create a negative impact on our industry is all we want."
Mr. Ekinci concluded by saying, "In order to penetrate new markets and increase our export volumes, it is very important that efforts to sign free trade agreements with the US, Algeria, and Brazil conclude positively. Also, the provision of incentives to Turkish contractors undertaking projects abroad so that they can meet their steel requirements from Turkey would have a positive impact on the sector. The solution of these and other problems is of vital importance for the future of the industry."
According to the data released by the CIB, in the first nine months this year Turkey's steel exports decreased by 10.5 percent in value to $10.5 billion and were down by 6.6 percent in volume to 13.93 million metric tons, both year on year. In the given period, Turkey's steel imports increased by 28.4 percent in volume to 11 million mt, with a value of $9.5 billion, up 15.1 percent, both on year-on-year basis.