Turkey's steel demand is expected to grow by 5.9 percent this year to 28.5 million metric tons, with a relatively strong performance compared to world average of 2.1 percent, according to the figures announced by Nae Hee Han, worldsteel's economic affairs director and chief economist, who was speaking on October 11 at the 46th annual meeting of the World Steel Association (worldsteel) held in New Delhi.
In February this year, the Turkish Iron and Steel Producers' Association (DCUD) had predicted an eight percent growth in
Turkey's steel demand in 2012.
Although
Turkey has to a certain extent been affected negatively by the global economic slowdown, low interest rates and a good employment outlook have provided support for Turkish steel demand, said Jürgen Kerkhoff from the German Steel Federation (WV Stahl) at the worldsteel conference.
Construction output is the main driver behind the growth of steel demand in the country, while demand coming from the
automotive industry is weaker, he added.
For 2012,
Turkey's steel demand is foreseen to be 26 percent higher as compared to the levels registered in 2007, before the 2008 world economic crisis.
Next year,
Turkey's steel demand is forecast to improve further by another five percent and to reach 30 million metric tons.
Commenting on the positive outlook presented by worldsteel regarding Turkish steel demand, Uğur Dalbeler, CEO of Turkish steel producer
Çolakoğlu told SteelOrbis on the sidelines of the conference that, despite the recent downward correction on Turkish economic growth forecasts, he is optimistic about the domestic
construction industry.
"Local elections in
Turkey will be held in October next year. So I think infrastructure projects will be intensified and will accelerate in the coming period, and this may also compensate for a possible slowdown in housing projects. However, the same optimism cannot be shared for the
automotive industry, which has shrunk significantly this year, or for the white goods industry, whose main market is Europe, which is in a debt crisis, unless white good manufacturers find alternative markets," he concluded.