Speaking at the "New Horizons in Global Steel Markets" 14th Annual Conference organized by SteelOrbis in Istanbul on November 6, Uğur Dalbeler, general manager of Turkish steelmaker Çolakoğlu Metalurji, platinum sponsor of the conference, said that developed countries have lost their competitive edge and that the world is switching to regionalization from globalization. He pointed out that the steel industry is facing certain challenges including Brexit, the recessionary threat in the EU due to slowing German manufacturing growth, wars in the Middle East, and the contraction of the Turkish domestic steel industry, all of which, he noted, are not encouraging.
Commenting on the changes in the EU quota system which mainly target Turkish exports, Mr. Dalbeler said that the EU benefited from the ECSC (European Coal and Steel Community) agreement with Turkey for 20 years and that they gained a significant advantage compared to their competitors after the Turkish market was opened up. “According to the agreement, if a dispute occurs, both parties should consult with each other and, if one party wants to protect its own market, this should be done with minimum damage to the other party. But the EU has used us as a target instead of doing these things. How are we supposed to believe the EU now if we are to sit down to sign another agreement?” he said, indicating that arbitration procedures should be initiated within the scope of the ECSC treaty. The Çolakoğlu official went on to say that the US tried to stop Turkish exports first with antidumping and countervailing duty investigations, before resorting to the Section 201 and 232 measures, adding, “Turkey should respond with a big-country reflex”. Mr. Dalbeler recalled that the EU and the US represent a total export potential of 12 million mt for Turkey, “We are exporting half of that, maybe we will have difficulty in managing even half in the coming years. This trend is expanding across the globe. Egypt, Morocco, Malaysia, Colombia and Australia are trying to impose similar measures. The market is getting smaller and competition will be hard in the smaller markets. Despite all these, our government and customers must think that we [Turkish steel industry] are so strong since there is an endless effort to scrap import duties,” he said.
Dalbeler stressed that the biggest problem facing the steel industry is environmental and that the most pressing issue is carbon emissions, adding that the steel industry is responsible for eight percent of total carbon emissions worldwide. He stated that there are carbon taxes in some countries and even carbon stock exchanges. “The average price of carbon dioxide is $20/mt. This will go up to $60/mt in 2030, to $120/mt in 2040 and to $180/mt in 2050, according to estimations. The cost structure in the industry will change and efficiency of material and energy will be more important. Works for decarbonization in steel production have already started, but we should be a part of it as well,” he concluded.