Turkey’s steel exports to Egypt hit hard by political upheaval, Libya next

Turkey's steel product exports to Egypt in February this year, when Egypt's foreign trade was hit hard due to the political upheaval in the country, declined by 86.2 percent year on year to 19,959 metric tons, according to the data provided by the Istanbul Mineral and Metals Exporters' Association (IMMIB). Compared to January, Turkey's total steel exports to Egypt went down by 75.45 percent in February.
 
Assessing the future of Turkey's steel trade to Egypt, Veysel Yayan, general secretary of the Turkish Iron and Steel Producers' Association, said that he is not pessimistic and that he believes that the greater participation of the population in the running of the country will accelerate housing and infrastructure projects in the country. Mr. Yayan also noted that, if Egypt abandons its current closed market situation for a more transparent economic model, this would be in favor of Egyptian consumers, leading to an increase in the country's consumption and imports. Thus, he said, Turkey's steel exports to Egypt will increase in the medium term.
 
However, also in February this year, Turkey's steel exports to the MENA (Middle East and North Africa) region as a whole increased by 18.3 percent as compared to January to 782,322 metric tons - up 26.73 percent year on year, accounting for 46.96 percent of the country's total steel exports in the given month, compared to 49.88 percent in February 2010.
 
Nevertheless, it should be noted that these data do not reflect the recent trade interruption to Libya, where major political turmoil is still seen, with the situation in the country deteriorating in March. Libya is one of Turkey's main steel export markets, with a volume of 34,684 metric tons of exports in February. This trade volume represented a year-on-year increase of 4.52 percent and a decrease of 12.68 percent as compared to January. In 2010 as a whole, Turkey's steel exports to Libya reached 811,317 metric tons, accounting for 4.68 percent of Turkey's total steel exports in 2010.
 
Mr. Yayan said that the political developments in Egypt, Libya, Tunisia and Yemen are foreseen to impact 90 percent of Turkey's steel exports to these countries; however, he said, the impact is expected to remain limited to 10 percent of Turkey's total steel exports.