CIB: Turkey’s steel exports to fall 40% in 2023 amid high energy prices

Wednesday, 29 March 2023 13:42:18 (GMT+3)   |   Istanbul
       

The Turkish Steel Exporters’ Association (CIB) has organized a trade delegation visit to Romania, to increase trade volumes. With the participation of 25 Turkish exporting companies, negotiations were held for new collaborations and joint investments.

Noting that Romania is Turkey’s second largest export market, Adnan Aslan, CIB chairman, said he hopes that 15 percent of Turkey’s exports to Romania will be made by the steel industry in 2023.

Stating that Turkey’s steel exports decreased by 40 percent in the first two months, Mr. Aslan said that the earthquakes in the country’s southeastern region did not affect the decline in exports, as 60-70 percent of the 11 million mt of steel produced in Osmaniye, Hatay and Iskenderun was consumed in the domestic market.

Estimating that the country’s steel exports will decrease by 40 percent this year, the CIB chairman stated that Turkey could not exhaust some of its EU import quotas in the first quarter of this year since the country has lost its price advantage in the export markets due to high energy prices. In addition, Mr. Aslan stated that the electricity and natural gas prices in Turkey may decrease to the same level as Europe from June this year.

Regarding the green agreement, Aslan said he thinks that it is easier for Turkey to prepare for the green transformation as 75 percent of the country’s steel production is based on electric arc furnaces.

Meanwhile, Aslan stated that the CIB will organize trade delegations to Belgium, the Netherlands, the UK and Poland following Romania, and will also organize a trade delegation to Senegal in the third quarter this year.