Posted on 28 Nov 2022
Turkey’s increasing use of Asian steel poses a risk to the Turkish manufacturing industry, Turkish Steel Exporters’ Association (CIB) vice president Uğur Dalbeler tells Bloomberg HT.
Imports from China, South Korea, Japan and India have increased significantly in the last two months due to Turkey’s rising production costs on costlier energy, Dalbeler says. This means Turkey’s steel industry is likely to face further contraction, Kallanish notes.
“While the Chinese steel industry is supported by the government and they have a production cost advantage, the energy cost issue is continuing to hamper the Turkish steel industry. We do not have a chance to compete with Asian countries with our current cost structure,” says Dalbeler.
Steel production is expected to contract by 35% in November and December, while the first quarter of next year is expected to be even more challenging in terms of energy costs due to deteriorating weather conditions.
Warning that the Turkish manufacturing industry carries a big risk if Turkish steel production comes to a halt amid the current problems, Dalbeler says: “If the manufacturing industry becomes dependent on imported steel from Asia or India, it will face difficulties to compete in the global arena.”
Dalbeler points out Turkey has a leading position in the world in terms of carbon-neutral production and the transition to green energy will further support the country’s position.
Source:Kallanish
