Evaluating the latest developments in the steel industry in an interview with the Turkish daily Dunya, Dr. Veysel Yayan, general secretary of the Turkish Steel Producers Association (TCUD), said that Turkey’s imports from China continue to increase, while the capacity utilization rates of Turkish steel plants are declining in line with the decrease in Turkish steel exports. According to Dr. Yayan, if capacity utilization falls below 60 percent, this will cause employment in the domestic steel industry to fall. The TCUD official also stated that the overall capacity utilization rate in the industry has declined to 62 percent, while the capacity utilization rate of domestic flat steel production in particular has decreased to 52 percent, and so the Turkish government needs to take urgent measures for the industry.
Dr. Yayan said that Turkey’s steel imports from China increased fourfold in the first ten months, while Turkey’s steel trade deficit with China reached $362 million in this period.
In addition, although the annual capacity of the Turkish steel industry is 50 million metric tons, Turkey’s steel production has been declining to 30 million metric tons. Dr. Yayan pointed out that, rather than increasing its production volume, Turkey has increased its steel imports.
According to the general secretary of the Turkish Steel Producers Association, Turkey needs to establish the necessary system to use the products it produces, and, in this context, cutting VAT rates can also help the steel industry, but still there is a need for urgent trade measures to tackle unfair imports.