Speaking during a panel discussion on the impact of Covid-19 on the flat steel, coated steel and steel pipe segments held on the last day of the 15th SteelOrbis "New Horizons in Steel Markets" annual conference held virtually on December 1-3, Kemal Saraç, general manager of Turkish pipe producer Yücel Boru and chairman of the Turkish Steel Pipe Manufacturers Association (ÇEBİD), stated that Turkey, which ranked fourth in the world in 2019 with its 4.1 million mt output of steel pipes, is a major customer of both domestic and overseas HRC suppliers, while it also tries to balance its pipe capacity, which is almost double its actual production, by exporting.
Pointing out that the EU and the US, which are the major buyers of Turkish steel pipes, have created serious problems for exports with the implementation of protective measures, Mr. Saraç stated that the Turkish pipe industry has also been challenged by the additional impact of the pandemic. He noted that Turkish pipe exports to the EU decreased by 20 percent due to the latter’s quotas. “Nevertheless, exports in the first nine months amounted to 1.3 million mt. We estimate they will increase to 1.8 million mt by the end of the year,” he stated. While stating that another problem facing the Turkish pipe sector is that the lead times for the supply of flat steel exceed three months, Saraç said that flat steel prices create a disadvantage in terms of exports as it cannot be purchased at the prices in the global market.
Sharing his expectations for 2021, the ÇEBİD chairman stated that the course of the pandemic will be decisive for the upcoming period, while protectionist measures against exports will determine the direction of the sector. He added that the volatility in the currency markets and the exchange rate will also be important for 2021.