Yalçın Ertan, chairman of the Aegean Ferrous and Non-Ferrous Metals Exporters Association, has stated that Turkish producers and exporters, who have been going through a difficult time in the last two years, should be supported with appropriate measures, according to a report in the Turkish daily newspaper Dünya.
Saying that the Turkish steel and non-ferrous metals sector has started to lose its competitiveness, especially in the European market, due to rising energy costs, the exchange rate which is under pressure, and inflation, Mr. Ertan stated that frequent changes in commercial practices have also led to a decrease in Turkey’s exports.
Pointing out that the share of Turkey’s exports to Europe, the sector’s main export market, has decreased from 43 percent to 31 percent, Mr. Ertan said that the market share was claimed by Far Eastern countries including China, South Korea, Japan, Vietnam and Taiwan, which have competitive input costs and easy access to finance. He added that it is very difficult for Turkey to regain its lost share. Noting that the Gulf countries and Iran, which were previously export markets for the Turkish steel and non-ferrous metals sector, are now competitors, the chairman of Aegean Ferrous and Non-Ferrous Metals Exporters Association said that the utilization rate of the sector’s liquid steel production capacity of 55 million mt has decreased from 78 percent to 51 percent and that this is raising concerns.
Stating that Turkey has become a net importer of iron and steel and almost an open market for the Far East, Ertan said that Turkish is unable to protect its iron and steel sector.
Regarding the war between Israel and Palestine, he said that the region is important in world trade and that Israel is Turkey’s third largest market, especially in terms of rebar, beam and wire rod.