Speaking to Turkish TV channel Bloomberg HT regarding the situation in the global steel market, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), stated that the general market outlook is uneasy and even negative.
Regarding weak demand which is another result of high inflation, Mr. Dalbeler stated that steel demand in Europe has come to a standstill and global steel demand has slowed down, causing markets to shrink.
Noting that competition has intensified with the shrinking of the markets, the CIB vice president stated that the competitiveness of the Turkish steel industry, which has higher energy costs compared to the countries in Asia, has been damaged. Another factor that has harmed the competitiveness of the Turkish steel industry is that Russia has been selling products at low prices to Turkey, its sole market. He also stated that this situation may cause problems for Turkey’s steel exports to the US and the EU in the coming period. According to Mr. Dalbeler, unfair competition may lead to a decrease in steel production in Turkey and even the closure of plants, which may have negative consequences in terms of steel production and employment. Noting that the Turkish steel industry gained an advantage as a result of the break in the supply chain, especially at the beginning of the pandemic period, Dalbeler said that the Turkish steel industry is facing the danger of losing this advantage in the long term due to the above problems.
Regarding government support, the CIB vice president stated that Turkey operates without incentives compared to its competitors, and that, while companies in the EU receive financing especially for green steel production, the Turkish steel industry may experience more difficulties in the coming period, and so urgent measures should be taken.