Namık Ekinci: Turkish rebar exports to EU may contract by over 60%

Monday, 11 February 2019 18:01:54 (GMT+3)   |   Istanbul
       

According to a Reuters report, Turkish Steel Federation chairman Namık Ekinci has said that Turkish rebar exports to the EU might see a contraction of more than 60 percent due to the definitive safeguard measures in the EU. 

Having lost an important share in its key markets such as the Middle East and the US, Turkish steel producers reduced their production, by shortening work hours, in the last months of 2018 due to slackened demand, Mr. Ekinci stated, adding that the import quotas in the EU might cause a further decline in Turkish steel production.

The Turkish Steel Federation chairman stated that the Turkish steel industry is negatively affected by the slowing down of domestic demand, the weakening of exports to the US due to Section 232 tariffs, as well as the increased trade with Iran after the US put an embargo on Iran preventing it from trading with other countries. Lastly, the loss of market share in Turkey’s largest export market, the EU, adds to the challenges facing the Turkish steel industry, he noted.

According to Namık Ekinci, in 2018 Turkey’s steel exports increased by 20.8 percent to 21.4 million mt, while its export value increased by 36.1 percent to $15.6 billion.

Turkey’s rebar exports to the EU amounted to 821,178 mt in 2018. The EU has set the rebar quota for Turkey at 117,231 mt for February 2019-June 2019, at 301,537 mt for July 2019-June 2020 and at 316,614 mt for July 2020-June 2021. For the 2.5 years during which the quota will be in force, the total rebar import quota for Turkey stands at 735,383 mt.

Mr. Ekinci also pointed out that Turkey’s safeguard measures remain insufficient, making Turkey an open market, while he warned that subsidized steel imports should be prevented. He added that rebar quality is becoming more and more important in Turkey which is located in an earthquake zone, suggesting that a safety certificate should become mandatory for imported steel.


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