Turkey's national gas supply company Petroleum Pipeline Corporation (BOTAS) has announced that it has made adjustments to natural gas wholesale prices effective as of August 1, taking into account market conditions, market price stability, the decisions of the country’s Energy Market Regulatory Authority regarding tariffs and the change in operational expenses.
Accordingly, the wholesale price of natural gas used by eligible consumers with an annual natural gas consumption of 300,000 Sm³ and lower, except for electricity generation, has been increased by 33.1 percent, while the wholesale price of natural gas used in residences has been increased by 38 percent.
In addition, no change has been reported regarding the price of natural gas used for electricity generation and the wholesale price of natural gas used by eligible consumers with an annual natural gas consumption of 300,000 Sm³ and higher, except for electricity production.
Most Turkish steel market players, who have been trying to assess the potential impact on the industry, believe there will be a quite limited impact, if any. “EAF mills will be hardly affected since natural gas is used by some of them for electricity production, while otherwise coal and electricity are used for steel production,” a trader said. The potential maximum impact on BOF-based mills’ costs, if any, may be $1.5-3/mt, according to SteelOrbis’ evaluation.