Speaking at the "New Horizons in Global Steel Markets" 14th Annual Conference organized by SteelOrbis in Istanbul on November 6, Aydin Ersoy, innovation, marketing and strategy development manager at Turkish galvanized steel producer Borcelik, shared his views on the latest situation in the Turkish galvanized steel sector with participants at the event. Mr. Ersoy stated that since gross domestic product in Turkey grew by seven percent during the 2010-14 period and as the global trade environment was more suitable in terms of free trade, five new galvanizing lines started production in Turkey, with the domestic installed annual capacity doubling to 5 million mt. However, following these improvements, tensions in the Middle East and the CIS - major export markets for Turkish galvanized coil producers, the safeguard measures started by the US, and the developments in the Chinese market caused Turkish mills to experience problems in exports and the new capacities could not be used to advantage.
According to the Borcelik official, despite these negative factors, the improvements in the Turkish auto sector have boosted hopes for galvanized coil consumption in the country. “In 2018, more than one million passenger cars were produced in Turkey. In the production of the frame of an automobile, including the doors, 800 kilograms of galvanized coil are used. Also, we are entering a new era. The cooperation of Volkswagen and Ford in commercial vehicle production is important news. Furthermore, Volkswagen will start its investment in Turkey after some political issues have been resolved. Meanwhile, little time is left before the domestically-produced automobile project will be launched, with the first prototype to be presented within two months. In addition, the PSA-Fiat merger will make Bursa a production center,” he said.
Summing up, Ersoy stated that the Turkish galvanized sector is not in the best position due to the overcapacity problem, though adding that producing value-added steel for the automotive industry may create opportunities.