Speaking to Turkish TV channel BloombergHT, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), said that the discovery of additional reserves of natural gas is a positive development for Turkey, which is dependent on imports for raw materials and energy. Talking about the impacts of the weakening of the local currency on Turkish steelmakers, Mr. Dalbeler stated that it negatively affects Turkey, which imports raw materials such as iron ore, coal and scrap. He said that it is important to have a stable exchange rate for forward planning.
Commenting on the impacts of a possible second wave of the coronavirus pandemic on Turkey’s steel industry, the CIB vice president said that the Turkish steel industry is ready for a second wave following its experiences at the beginning of the outbreak. He said that as of the end of September Turkey’s steel production exceeded the performance recorded last year, while noting that the situation around the world is different. Having 60 percent share of the world’s steel production, China recorded a GDP growth of 4.9 percent. While the rest of the world recorded a GDP decline of 10 percent, Dalbeler stated that Turkey’s position is better due to its growth of one percent. He said that Turkey, which is the second largest steel producer in Europe, matched Germany’s performance by the end of September and may become the largest producer in Europe by the end of this year.
Mr. Dalbeler indicated that China faced significant difficulties in exports due to the pandemic in the first quarter of this year, but by the end of May it managed to grow by controlling the virus. Speaking about exports to Southeast Asia and Far Eastern markets, Dalbeler said that China’s performance in the first quarter of the current year contributed to Turkey’s export performance. Turkey, he noted, gained the opportunity to re-enter the markets in Southeast Asia and Far East where it had been unable to export due to Chinese exports. As a result, Turkey recorded growth in its steel exports to Hong Kong and Malaysia. Dalbeler forecast that this growth will continue in the coming years.