The Turkish Steel Exporters' Association (CIB) has stated that, despite the problems in the export markets, 2017 was a year in which the losses seen in previous years in the Turkish steel industry were partially offset. According to the CIB, the ongoing problems in major export markets, unfair trade policy measures, the threat posed by some countries which are establishing their domestic steel industries and reducing their steel imports from other countries, and the expectation that the rise in raw material prices will continue will also be challenging for Turkish steel exporters in the current year as they were in 2017.
In 2017, Turkey's steel exports increased by 7.7 percent year on year to 17.8 million mt, while the value of these exports totaled $11.5 billion, up 26.4 percent on year-on-year basis, according to the data released by the CIB.
In 2017, Turkey's main steel export destination was the EU, which received 5.6 million mt of steel products from Turkey, increasing by 55 percent year on year. The EU was followed by the Middle East, North America and North Africa, which imported 4.1 million mt, 2.2 million mt and 1.5 million mt of Turkish steel products respectively. In the given year, Turkish steel exports to the Far East, especially Singapore, Hong Kong and Malaysia, exceeded 1.2 million mt, up 507 percent year on year, while steel exports to the Central and South America increased by 35 percent year on year to 1.2 million mt. In the same period, Singapore, Italy, Spain, Hong Kong and Canada recorded the highest year-on-year increases in steel product imports from Turkey, while the highest year-on-year decreases were recorded in the United Arab Emirates (UAE), Egypt, the US, Iraq and Oman.
Meanwhile, in 2017, Turkey's main exported steel product was rebar with total exports amounting to 5.6 million mt. Rebar was followed by hot rolled flat steel exports totaling 2.5 million mt, welded pipe exports amounting to 1.9 million mt, steel sections totaling 1.5 million mt and wire rod exports reaching 1.4 million mt.
In the last quarter of 2017, Turkey's steel exports rose by 10.2 percent year on year to 4.7 million mt, while the value of these exports totaled $3.3 billion, rising by 35.3 percent compared to the same period of 2016.
“Our steel exports to the Middle East countries, which we have described as our traditional markets, decreased in 2017. The reason for this is the political instability in some countries and the increasing steel production in the region in general. We have also suffered losses due to the increasing protectionist tendency in the world, especially in the US, and unfair trade measures. In spite of all these negativities, we were able to compensate for these losses by expanding into new markets. The most concrete example of this is the great momentum we have achieved in exports to the Far East countries in 2017,” CIB chairman Namik Ekinci said.
In addition, Mr. Ekinci added that in 2017 the Turkish steel industry exported rebar to Hong Kong and Canada, which respectively received 280,000 mt and 225,000 mt, while in 2016 there were no rebar exports to these destinations.