Speaking at the first session of the 7th YISAD Flat Steel Conference & SteelOrbis Market Talks held in Istanbul on April 30, Uğur Dalbeler, general manager of Turkish steel producer Çolakoğlu Metalurji, said that the Turkish steel industry has survived various crisis periods down through the years. He stated that, while expectations for 2018 had been positive, “day suddenly turned into night” in the second half of the year.
The Çolakoğlu official said that, because of the problems in the second half of 2018, steel consumption in Turkey decreased by 12 percent, affecting import volumes as well. In the first three months of the current year, total steel consumption contracted by 38 percent in the Turkish domestic market, while rebar consumption and sales declined by 65 percent in the first quarter and rebar exports declined by 11 percent. He indicated that this contributed to a 45 percent decline in steel production in the same period, adding that steel production in Turkey has declined by half since last year.
Meanwhile, Mr. Dalbeler said that flat steel exports increased in the first quarter, going on to say that hot rolled flat steel exports may rise to 5 million mt by the end of the current year at this rate. “However, I wish that this volume stayed in the country, was consumed within the country and then exported after value addition,” he added.
In the first quarter, Mr. Dalbeler stated, total Turkish steel exports increased by almost 20 percent, while he warned that in the second half exports will fall and that last year’s figures will not be reached. The increase in exports in the first three months was supported by the new EU quota volumes opened in early April, the overall EU quota for hot rolled flat products, and rising billet exports. However, the new quota volumes in the EU were exhausted within just two days, while Egypt imposed a safeguard duty on billet imports. As a result, Mr. Dalbeler expects that in the second half of the year the performance of the Turkish steel industry will be far below its first quarter performance.
The Çolakoğlu official pointed out that extra energy costs are another problem for the Turkish steel industry. He said that the extra cost for renewable energy reached TRY 0.14 in March, reflecting an extra cost of TRY 75-80 per ton of steel produced.
Mr. Dalbeler said that the Turkish flat steel industry should meet on a common ground and act together to solve its problems, recalling that the problems facing the Turkish steel industry bring out difficulties not only within the country but also in foreign markets.