At a press conference held today by the Turkish Steel Exporters’ Association (ÇİB), the situation in Turkish steel industry in 2023 has been addressed, while the future targets and expectations for 2024 have been shared.
In the first 11 months this year, Turkey’s steel exports fell by 28.8 percent year on year to 13.05 million mt and its steel export value decreased by 31.2 percent to $13.54 billion. Adnan Aslan, chairman of the ÇİB, has stated that the decrease in exports was due to safeguard measures, the North African countries such as Egypt and Algeria to which Turkey exports becoming net exporters, and the Far Eastern countries returning to market with the decline in freight and container prices. Stating that the country’s steel imports in the given period increased by 14.8 percent year on year to 17.64 million mt, Mr. Aslan noted that Turkey has become a net importer in terms of finished steel products, especially wire rod, for the first time since 2015. ÇİB chairman reported that the increase in imports seems to harm local steel producers, and that other countries are implementing policies to protect their steel industries, while Turkey still remains an open market.
Reporting that Turkey’s steel exports, which exceeded 20 million mt in 2022, will reach only 14 million mt in 2023, compared to previously expected 16 million mt, Mr. Aslan said that the industry aims for 15 million mt of exports in 2024.
Regarding steel production, Mr. Aslan stated that the capacity utilization in the country is at 50-55 percent due to lack of demand and higher energy costs. Meanwhile, saying that the rise in imports from FTA countries should be prevented, ÇİB chairman added that the association has applied for an investigation for the possibility of subsidies in imports.
Speaking after Adnan Aslan, Uğur Dalbeler, vice president of the ÇİB, noted that the monetary policies have resulted in contraction in Turkey’s main markets and reminded that the problems seen in China has led the country’s steel industry to focus on exports. Despite the increase in flat steel capacities in the country and duties, imports continue because foreign suppliers are offering at low prices, therefore Turkish steel industry is forced to cut production and new investments cannot be planned, according to Mr. Dalbeler. In addition, speaking about the EU extending the import quota period for ex-Russia slab, vice president of the ÇİB noted that it is hypocrisy that the EU allowing ex-Russian semi-finished products into the region, while banning the imports of finished steel products manufactured with Russian material. Mr. Dalbeler said that the Turkish steel industry, which uses iron ore and scrap as raw material, has an advantage against the Carbon Border Adjustment Mechanism, and that a significant increase in renewable energy investment is necessary to further reduce emission rates. According to Dalbeler, if Turkish steel industry prioritizes renewable energy investments and receives government support, it will maintain its advantage in terms of competition.
