Speaking to Turkish TV channel Bloomberg HT, Veysel Yayan, secretary general of the Turkish Steel Producers’ Association (TCUD), talked about the negative effects of the increase in energy prices on the Turkish steel industry.
Mr. Yayan stated that the increase by more than 50 percent in energy prices in August rewrote all the balances in the steel industry. Saying that the share of energy costs in the Turkish steel industry, which had been seven to eight percent among all costs, has increased to approximately 28-30 percent, Mr. Yayan said that costs that are around $700 in Turkey are in the range of around $570-580 in other countries.
“We understand that some measures should be taken to eliminate the losses of some industries. We face difficulties when we have to bear the costs of other industries. Our industry has lost its strength,” he said.
The secretary general of the TCUD stated that there is a significant decrease in Turkey’s steel exports due to the decrease in competitiveness amid the imbalances caused by the increasing energy costs. It has been reported that Turkey’s steel exports to the EU and Asian countries are in difficulty. However, Turkey’s steel imports increased.
Yayan stated that the capacity utilization rate of the Turkish steel industry has decreased from 75 percent to below 60 percent as producers have reduced their shifts or stopped production activities.