At the 17th Middle East Iron and Steel Conference recently held in Dubai, market players stated that crude steel production in the MENA (Middle East and North Africa) region has increased gradually over the years and that this may contribute to reduced steel imports coming into the region, while also creating an opportunity for boosting exports.
Adalet Kazimli, international trade director at Turkish integrated steel producer Erdemir, and Mete Sahin, export sales manager at Colakoglu Metalurgy, told attendees that they expect domestic steel consumption in Turkey to increase next year on the back of mega construction projects including the third Bosphorus bridge and the third airport in Istanbul, though they also said that the political disturbances in the MENA region have affected Turkish steel exports to this region negatively. Mr. Kazimli also stated that Turkey is seeking to increase its flat steel exports.
Representatives of major steel producers in the MENA region said that imports of Turkish steel at lower prices into the MENA region should be reduced, as these imports narrow their domestic market share. For their part, representatives of the Turkish mills pointed out that the Turkish steel industry is dependent on ferrous scrap, a costly raw material, and that no governmental incentive is allowed for the Turkish steel sector, adding that Turkey has to sell steel products at competitive prices in already contracted export markets. The representatives of the Turkish mills also said that Turkey's finished steel export prices for the MENA region are in line with steel prices in the Turkish domestic market.