The Turkish Steel Producers Association (TCUD) has demanded action against companies it claims are importing Iran-origin steel under the inward processing regime and then re-exporting it labelled as Turkish product.
Iran-origin steel imports into Turkey surged six-fold on-year in the first half of 2019 to 150,000 tonnes, 95% of which was rebar. Some of this steel is being used in construction projects despite its questionable quality, TCUD says. Some Turkey-based firms meanwhile are changing the certificate of origin on Iranian product and re-exporting it as Turkish material. This practice is damaging the reputation of Turkish products in Turkey’s traditional export markets, the association adds.
Turkey’s overall steel imports declined -33% on-year in H1 to 5.8 million tonnes, while crude steel output fell -10.1% to 17mt and finished steel consumption declined -32.3% to 12.3mt (see separate story). This level of imports, at a time of struggle for the steel sector at home and globally, is “… unacceptable,” TCUD comments.
“In terms of the protection of domestic production and the future of our exports, it is vital to take the necessary measures urgently in this field,” TCUD concludes in a note seen by Kallanish.