Veysel Yayan: FTA with EU works against Turkish steel industry

The 7th SteelOrbis Turkish Steel Market Conference, held in Istanbul on November 16 with the sponsorship of Turkish integrated steelmaker Erdemir, began with a quick look by the SteelOrbis team at market developments since the last conference took place, followed by a presentation on world steel production trends and a look at the Turkish steel industry by Dr. Veysel Yayan, general secretary of the Turkish Iron and Steel Producers' Association (DCUD).
 
Reminding his listeners that the Turkish steel industry has recorded great achievements during a troubled period, Veysel Yayan said that Turkey ranks eighth among the top 15 steelmaking countries in the world. Mr. Yayan stated that Turkey may become Europe's largest steel producer in the near term, pointing out that the gap between Turkey and Germany, the seventh-largest steelmaking country is closing, on condition that the slowdown in Germany continues and that Turkey maintains its momentum.
 
Mr. Yayan underlined that capacity surplus is still an issue despite the plant shutdowns in China and Europe and that it continues to put pressure on prices. He estimated that the global steel production capacity surplus will reach 523 million mt in 2012.
 
The DCUD general secretary pointed out that Turkey is the country with the third-largest growth in apparent finished steel consumption after China and India, adding that in 2012 Turkey's finished steel consumption is estimated to increase by 20 percent to 28.5 million mt as compared to 2007. Regarding Turkey's finished steel consumption per capita, he said that this year the figure is expected to reach 375 kg, emphasizing that this exceeds the world average of 270 kg.
 
Veysel Yayan stated that Turkish steel industry production grew by 8.4 percent in the first nine months of 2012, but it is expected to register seven percent growth for the full year following the decline recorded in October, while he also underscored that Turkish steel industry production growth is two times higher than Turkish domestic GDP growth.
 
Dr. Yayan stated that Turkey's free trade agreement (FTA) with the EU works against the Turkish steel industry. He indicated that Turkey's steel exports to the EU have declined so far in this year, whereas imports from the EU to Turkey have increased. Yayan pointed out that the EU has provided other countries with the advantages given to Turkey, while for Turkey it has included certain products in the European Coal and Steel Community (ECSC) Treaty and excluded certain other products unilaterally. Mr. Yayan added that the free trade agreement with the EU has caused an imbalance between imports and exports and that necessary measures will be taken.