Turkish steel industry urges measures to underpin a true recovery

The share of the Turkish steel industry in the world steel market has regressed, according to Dr. Veysel Yayan, the general secretary of Turkish Iron and Steel Producers' Association (DCUD), who noted that Turkey's steel product exports in the first five months of 2010 even dropped 18 percent below the low volume registered in the corresponding period of 2009.
 
Dr. Yayan further stressed that this decline rate partially disguises the gravity of the situation, given that in the January-May period of this year exports of low-value added products, such as steel billet and slab, increased by 152 percent and 392 percent respectively, while exports of high-value added products like flat and long products declined by about 50 percent as compared to the corresponding period of 2009. The general secretary also underlined that the unfavorable situation in the country's steel exports has had an adverse effect on employment in the industry, which decreased 10 percent in 2009 as compared to the previous year.
 
Noting that the Turkish steel industry has reached an annual production capacity of 43.5 million metric tons in 2010 following significant investments, Dr. Yayan said that the operation of such a capacity at just 68 percent should provoke all the official bodies responsible for the economy to take immediate measures.
 
In order to lead the industry to a tangible recovery, on behalf of Turkish steel producers Dr. Yayan urged the government to reduce the burdens on the steel industry, such as lifting environmental contribution payments and the TRT (Turkish Radio and Television) toll. Dr. Yayan also proposed the reduction of energy prices for the industry in order to help increase the competitiveness of the industry and to boost employment in the sector.