During the "New Horizons in Global Steel Markets" 12th Annual Conference organized by SteelOrbis in Istanbul on November 2, Fatih Çıtak, market planning director of Oyak Mining and Metallurgy Group, drew attention to the steel industry’s flexibility as its leading strength, while he also stated that steel producers in Turkey - the eighth biggest steel producing country in the world - had imported semi-finished steel during the 2014-2015 commodity crisis and had also diversified their export markets. Çıtak commented that the abundance of liquidity globally constitutes an opportunity for the Turkish steel market, adding that if foreseen and calculated scenarios become a reality then they do actually reach crisis stage since the scenarios have provided the opportunity to prepare.” Mr. Çıtak also stressed that, although the Middle East is a risk right now, the countries in ruins today will one day be rebuilt.
The Oyak official cited electric cars as an example of the risks and threats to the steel industry, saying if electric vehicles surpass traditional automobiles by 2035, the whole system as well as brands will change, though, in this context it is not currently possible to foresee the changes Turkish steel mills will go through then. He also stated that infrastructure investments in Turkey need to continue due to the young population of the country and due to the uncompleted urbanization in Turkey, which is also an opportunity specifically for the steel industry. Considering all these, he said that the steel industry is characterized by strengths and opportunities.
Having made evaluations regarding the increasing scrap supply in China, Çıtak said that 94 percent of China’s steel production is from iron ore, while six percent is scrap-based, and so he does not foresee that China will take action to make scrap prices more competitive than iron ore prices.