Speaking to the press, Turkish Steel Exporters’ Association (CIB) chairman Adnan Aslan said that, while the Turkish economy might slow down in the third quarter, the domestic steel industry will not be immediately affected as steel orders for the third quarter have already been received. He added that the Turkish steel industry might see the effects in the first quarter of 2019.
According to Turkish daily Dunya, Mr. Aslan indicated that the increases in raw material costs, especially electrode and refractory and the depreciation of Turkish lira is negatively affecting raw material costs which is 80 percent dependent on imports.
The CIB chairman pointed out that industrial electricity prices saw significant rises in May and June, been reflected in steel costs. “This will result in a $40-45/mt cost increase with electric arc furnaces operating for 24 hours a day," he said.