Turkish steel industry concerned by EU AD action on hollow profiles

Friday, 06 April 2012 17:22:36 (GMT+3)   |  
       

As SteelOrbis reported on Wednesday, April 4, the European Union has initiated an antidumping (AD) investigation regarding certain welded tubes, pipes and hollow profiles of square or rectangular cross-section from the Republic of Macedonia, Turkey and Ukraine. Market players consulted by SteelOrbis have stated that, in the event of an antidumping duty decision by the European Commission (EC), the Turkish pipe industry will be negatively affected.
 
Mr. Namık Ekinci, chairman of Turkey's Steel Exporters' Association (CIB), told SteelOrbis that he thinks that the complaint leading to the investigation "has artificially become the main topic and does not rely on any concrete evidence", adding that input and finished product prices in the Turkish steel industry are in line with those in the global steel industry.
 
Mr. Ekinci underlined that Turkey's domestic prices are in line with export prices, stating, "We do not have the luxury to go beyond this pricing and lose a market."
 
Furthermore, Ekinci said that the Steel Exporters' Association will continue to do their part to defend the domestic industry, adding that they are working with Turkey's Ministry of Finance and domestic industry representatives.
 
Speaking to SteelOrbis, Ali Okyay, export manager of Borusan Mannesmann, said that the EU is one of the biggest export markets of Turkey in terms of logistic opportunities and competition, underlining that hollow section exports to the EU could come to an end if the EC decides to apply an antidumping duty and if the duty rate is set around 10 percent.
 
Mr. Okyay stated that some producers could pull out of the hollow section export market altogether and direct their products to the domestic market, adding that this would cause oversupply resulting in decreased prices and strong competition in the Turkish market. The Borusan Mannesmann official indicated that the option of directing the product volumes sold to the EU to different export markets is a process that would take time.
 
Regarding the concerns of the buyers about the antidumping investigation, Okyay pointed out that European buyers have become cautious about booking orders from Turkey, although the investigation will not have retrospective consequences.
 
Giving his view of the situation to SteelOrbis, Kemal Sarac, general manager of Turkish pipe producer Yucel Boru, stated that these investigations have been initiated at intervals over several years, but are postponed before completion since no dumping evidence.
 
Mr. Sarac indicated that EU countries are preferred by Turkish exporters due to geographical proximity and their business relations built up over many years, adding that in the event of an antidumping duty order different export markets could be considered, in addition to the ongoing sales to the domestic market.
 
If the investigation results in an antidumping duty order, individual duty rates will be determined for the exporters concerned by the investigation and all the other exporters not involved in the investigation will be subject to a country-wide duty rate set for Turkey.

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