Speaking to Bloomberg HT regarding the EU’s new import measures, Veysel Yayan, secretary general of the Turkish Steel Producers Association (TCUD), stated that the move is incompatible with the spirit of the Customs Union. Mr. Yayan added that Turkey should now seriously consider exercising its long-unused right to implement countermeasures.
Noting that Turkey’s share in the European steel market has been gradually reduced in recent years, he recalled that Turkey’s steel exports, which had once reached 7-7.5 million mt, were significantly restricted in 2018. He noted that, with the new quota system, Turkey’s share in the European market has once again been reduced. Despite additional proposals offered by the EU, Turkey has still not been able to reach even its 14.2 percent import share, he said. Mr. Yayan emphasized that the quota levels proposed by the EU for Turkey remain below current utilization levels, adding that this contradicts the spirit of the Customs Union.
Stating that the EU is adopting an increasingly protectionist approach in steel trade, Mr. Yayan noted that European officials occasionally state that Turkey will be evaluated within the framework of the “Made in Europe” approach, but added that the current quota system does not provide Turkey with any real advantage.
Latin America seen as alternative for Turkey
The TCUD secretary general stated that, if no improvement is made to the quota system by July 1, the Turkish steel sector may increasingly turn toward alternative markets. He pointed out that the Latin American market holds significant potential for Turkish producers.
Turkey outperforms the global average in production growth
According to Yayan, despite the slowdown in global steel production, Turkey’s production performance remained above the world average. He stated that steel production in Turkey increased by 5.5 percent in the first quarter, while global production growth remained at 3.5 percent, indicating that Turkey has positively differentiated itself in this environment.