During the "New Horizons in Global Steel Markets" 13th Annual Conference organized by SteelOrbis in Istanbul on November 8, Dr. Veysel Yayan, general secretary of the Turkish Steel Producers Association, said that the indicators in the global steel industry are positive, mostly supported by China. He stated that in the first nine months of the current year, global crude steel production grew by 4.7 percent, while China posted a 6.1 percent increase, both on year-on-year basis. He added that other fast growing countries included Iran and Vietnam who recorded growths of 20 percent and higher.
In 2017, Turkey’s crude steel production increased by 13.2 percent to 37.5 million mt, while in the first nine months the country produced 28 million mt of crude steel. Mr. Yayan said that as regards the full year of 2018 there are signs that Turkey’s crude steel output may decline because its steel consumption has declined. He added that capacity utilization rates in Turkey have indicated moderate growth; however, he pointed out that the capacity utilization rates, which have been at the same levels for the last five years, are not based on the insufficient domestic demand but on Turkey’s foreign trade policy which encourages imports.
The TCUD official said that in Turkey flat steel production has shown an improvement in the current year, and, although finished steel production decreased in August and September, the decline in flat steel was moderate, while long steel production saw a sharper decline. Looking at the flat steel capacity utilization rate, he pointed out that in 2015 it stood at 44 percent before going up to 70 percent in 2018. He went on to say that this latest level may be seen as a success for Turkey, though adding that there is still a long way to go in terms of global standards.
Recent developments have caused a decline in imports, according to Mr. Yayan, with imports accounting for 47.4 percent of total domestic consumption in the first nine months of this year, while the export to import ratio stands at 121 percent.
Commenting on rising protectionism worldwide, especially the measures imposed by the US and the EU, Yayan stated, “These measures torpedo world steel trade and also impact free trade in general. Turkey is not in a position to retaliate against the US in the steel industry, but instead has increased tariffs on automotive and mobile phones. Americans, and Europeans to some extent, are defenders of free trade only if it is in their favor. They immediately take action when they feel it starts to hurt them.”
Mr. Yayan concluded his speech by saying that the Turkish steel industry has to adjust its production not in line with habits but according to current requirements, responding to the needs in the domestic market. He said that Turkey will continue to grow and its steel industry will contribute to tackling problems.