Worldsteel: Turkish steel demand to fall 14.5% in 2019, rise by 6.0% in 2020

Monday, 14 October 2019 18:06:26 (GMT+3)   |   Istanbul
       

Releasing its short-range outlook (SRO) report for 2019 and 2020 at its 53rd annual meeting held in Monterrey, Mexico, on October 14-15, worldsteel (World Steel Association) indicated that steel demand in Turkey will decrease by 14.5 percent in 2019 to 26.1 million mt, but will recover by six percent to 27.7 million mt in 2020.

In its press release, worldsteel stated that Turkey has seen contracting construction activity in line with the overall economy. After a severe decline in 2019, Turkey will see only a moderate rebound in 2020. Worldsteel added that the Turkish auto industry continues to struggle with contraction in both domestic and export markets. It also attributed its forecast of a 0.4 percent slowdown in steel demand in 2019 in emerging economies due to contractions in Turkey, the Middle East and North Africa (MENA) region. Worldsteel director general Dr. Edwin Basson remarked at the press announcement that the predicted 12.1 percent drop in steel demand in ‘Other Europe’ (non-EU countries) in 2019 to 32.9 million mt is largely due to the fact that Turkey is included in this category. He remarked that the liquidity crisis and the depreciation of the lira has impacted steel demand in Turkey. On the positive side, he remarked that the Turkish government has been trying to bring the situation under control by reducing interest rates in order to boost consumption. He commented that, while Turkey is characterized as an emerging economy, it also has characteristics of developed economies where the demand for steel is also driven by replacement of old housing, while Turkish demand is, in addition, driven by new housing projects, with the movement of people from the countryside to the cities being a factor in this. Dr. Basson said that, while Turkey and the world in general are faced by many uncertainties, steel demand everywhere is surprisingly robust.


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