Speaking to Ekotürk TV regarding the increase in global energy costs and its effects on the Turkish steel industry, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), stated that energy is one of the most important inputs of the steel industry and that there are problems not only in terms of cost, but also in terms of accessibility.
Noting that the previous share of energy in the conversion cost was about 30 percent, Mr. Dalbeler stated that today, with the five to six-fold increase in energy costs, the share of energy in the conversion cost in steel production has reached 70-75 percent. The CIB official stated that, although Turkey is in a relatively better situation compared to the EU in terms of energy and natural gas costs, this situation cannot be used as an advantage since demand from the EU has decreased. Stating that Turkish steel producers are trying to maintain their existing capacities instead of making new investments, he said that, if measures are not taken, the plants will not be able to continue their activities and unemployment will increase.
Speaking about the effects of the war between Russia and Ukraine, the vice president of the CIB said that this crisis was expected to have a positive impact on the Turkish steel industry, but now the situation has been reversed. Noting that Russian producers are selling steel at dumped prices to Turkey, which has become the country’s only market due to the sanctions imposed by the EU, Uğur Dalbeler stated that the Turkish steel industry was negatively affected and that Turkey’s exports may be at risk in the coming period, with the possibility of sanctions by the US and the EU on steel which has Russian input.
Saying that energy costs and Russia’s pressure on Turkey have put the Turkish steel industry in a corner, Dalbeler stated that measures should be taken especially against unfair competition in imports, or otherwise the decrease in production may accelerate in the coming period.