The Turkish stainless sector continues to be characterized by stagnation. The contraction seen in mid-August is still evident in September. No rise in production has been observed in certain export-focused sectors - such as automotive, white goods, shipbuilding and kitchen utensils - which are important for the stainless steel markets. Consequently, the stainless sector in Turkey still maintains its silence. The current trading volume figures in the sector are far lower than the figures in the pre-crisis period. On the other hand, in the current period, it is heard that many companies with no financial problems have found new opportunities doing business with companies that pose little or no risk on a financial level. In fact, although some small companies have closed down, it is possible to hear of other companies with new investments coming on stream.
According to the Turkish Exporters Assembly (TIM) figures, Turkish exports decreased by 30.53 percent in September compared to the same period last year, declining to a value of $8.388 billion. Turkish exports for September and for the latest thirteen months are as follows:
Sectors |
Sept 09 (x $1,000) |
Change year on year (%) |
Share of overall exports (%) |
Sept 1, 2008-Sept 30, 2009 (x $1,000) |
Change compared to previous thirteen months (%) |
Share of overall exports (%) |
I. Agriculture |
1,161,598 |
-14.69 |
13.85 |
13,001,795 |
-3.19 |
13.79 |
II. Industrial |
6,966,941 |
-32.87 |
83.06 |
78,929,732 |
-31.82 |
83.72 |
III. Mining |
259,697 |
-22.33 |
3.1 |
2,351,638 |
-30.48 |
2.49 |
Total |
8,388,236 |
-30.53 |
100 |
94,283,167 |
-28.89 |
100 |
Additionally, the Turkish Statistical Institute (TUIK) has announced Turkey's industrial production figures for September. According to the TUIK, industrial production rates in Turkey decreased by 5.5 percent in September. In line with this situation, stainless consumption in the local market in Turkey (where most stainless materials are imported) has contracted significantly and a recovery appears unlikely before 2010.
Meanwhile, a lot of importers and steel service centers in Turkey have recently started to prefer material from the Far East, mainly due to the lower price levels involved as compared to prices for European materials. The situation of lower prices from the Far East prevails not only in Turkey but also in the Middle East, Russia, the Turkic states and North Africa, all of which import significant quantities of stainless. The lack of any increase in global stainless steel consumption and also the downtrend in stainless steel consumption in the Far East have not only caused price decreases but have also resulted in production cuts by most European and by some Far Eastern producers. Since no rapid recovery is anticipated in the upcoming period, it is thought that more production cuts are almost certainly likely to be seen. The fall in consumption levels in China in particular is having a negative effect on the global stainless steel sector. As is widely known, stainless prices worldwide in general register a downward trend when producers in the Far East begin to focus mainly on exports.