Ali Eren, board member of the Turkish Machinery Federation and member of the Istanbul Chamber of Industry, has stated that, together with the implementation of antidumping duties on HRC from China, India, Japan and Russia, the protectionist measures on flat steel imports and high tariffs have caused increases in costs and inflation, and that these increases have resulted in export-focused industries such as pipes, white goods, automotive, shipbuilding and machinery that use flat steel as input in their production experiencing some difficulties in terms of input supply and in competition. The industries in question account for a 25 percent share in Turkey’s exports.
Reporting that, apart from the restrictions on HRC imports, Turkey’s HRC exports to the EU have increased, Mr. Eren stated that the increase in HRC exports has led to a decrease in the availability of flat steel in the domestic market, making the current situation more difficult for local flat steel users.
Meanwhile, saying that import dependency is seen in the semi-finished product segment as well as in flat steel, Mr. Eren noted that flat steel producers are focusing on slab imports instead of increasing liquid steel capacity usage, which is currently at 65 percent. Turkey imported 2.8 million mt of slabs worth $1.6 billion in 2023. Stating that, despite capacity increases, the flat steel industry, which cannot meet its requirements in terms of quality, delivery time and price, is unable to substitute imports, Eren said that the measures and tariffs on the critical inputs are negatively affecting the Turkish industry.
Calling for a revision of the measures and tariffs to prevent damage to Turkish flat steel users’ competitiveness, Eren stated that it is important to maintain strategic policies such as the inward processing regime.