Speaking to Turkish TV channel Bloomberg HT regarding the situation in the Turkish steel industry, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), stated that energy cost continues to be an issue and that the competitiveness of the Turkish steel industry is affected by higher energy prices compared to prices in Europe. Noting that the share of energy costs in total costs has increased from seven percent to 27 percent in the Turkish steel industry, Mr. Dalbeler stated that production rates in Turkey have decreased and that costs may increase further during the winter season.
Stating that the Far East market has an advantage in terms of energy costs, the CIB vice president said that deals for steel originating from China, South Korea, Japan and India have increased recently, and that the Turkish steel industry does not have a chance to compete with these countries with its current cost structure.
Recalling that the EU has banned steel imports from Russia due to the war, Mr. Dalbeler stated that the Turkish steel industry, and therefore the Turkish manufacturing industry, would experience difficulties due to Russia’s aggressiveness in its only market, Turkey. According to the CIB vice president, if the Turkish steel industry becomes unable to serve the manufacturing industry, great risks await Turkish manufacturing, which will have to purchase raw materials from countries such as China and India.
Meanwhile, stating that the Turkish steel industry is one of the cleanest steel industries in the world, Dalbeler said that some Turkish steel producers have taken decisions to make renewable energy investments and that these investments will be a great advantage for the Turkish steel industry in the coming period.
