Turkey to become a flat steel exporter in coming period

On May 25, Turkey's Association of Flat Steel Importers and Manufacturers (YISAD) assessed developments in the flat steel industry and in the Turkish economy at a meeting, entitled "Flat Steel Industry and Turkish Economy". Turkish integrated steelmaker Erdemir's general manager Oguz Ozgen and president of the Banks Association of Turkey H. Ersin Özince gave speeches at the meeting.
 
At the meeting, YISAD chairman Mustafa Acıkalin stressed that Turkey's flat steel imports in 2009 decreased by 30.86 percent year on year amounting to 5.6 million metric tons, while the country's flat steel exports in 2009 reached 1.65 million metric tons, from 1.4 million metric tons in 2008. "For years, Turkey's flat steel consumption has been based on dependence on imports, since a balance between flat steel production and consumption had not been reached. However, this imbalance will be leveled in the coming periods and Turkey will switch to being a flat steel exporter, from being a consistent flat steel importer," Mr. Acıkalin said.
 
On the other hand, Erdemir general manager Oguz Ozgen said that Turkey still ranks tenth among countries with the largest crude steel outputs, despite a 5.6 percent decrease in the country's crude steel output in 2009. Assessing that mergers and consolidations would continue in the industry, Ozgen said that in 1997 crude steel output of the top 15 biggest steel producing companies accounted for 28 percent of world's total production and that in 2008 this percentage reached 36 percent. According to the data mentioned by Mr. Ozgen, in the first quarter of 2010 Turkey's flat steel imports amounted to 1.7 million metric tons. If this trend continues, he said, Turkey's flat steel imports in 2010 would exceed six million metric tons. Mr. Ozgen also informed his listeners that Erdemir Group's liquid steel output totaled 6.62 million metric tons in 2009, while its flat steel sales reached 5.13 million metric tons in 2009. Erdemir Group's total finished flat steel sales in the first quarter of 2010 totaled 1.19 million metric tons, according to Mr. Ozgen.
 
Erdemir's general manager said that previous economic recessions before 2008 emerged from countries' domestic economic dynamics, while the last downturn possesses different characteristics. Ozgen also said that, due to the financial crisis in 2008, world steel prices slipped 75 percent. Assessing the current developments in the raw material markets, Ozgen said that switching to the quarterly contract system in the iron ore trade may lead to a surge in spot market sales of steel products.