At the SteelOrbis Market Talks meeting held at the Bursa Crowne Plaza on June 13, with the sponsorship of Yıldız Demir Çelik, CIES and STS Group, Erhan Özdemir, deputy general manager of Turkish flat steel producer Yıldız Demir Çelik, talked about the latest developments in the steel market, the situation in the Turkish steel market and the expectations for the future.
Stating that the inability to control inflation and the ongoing rise in energy prices due to the war between Russia and Ukraine have led to a contraction in consumption, Erhan Özdemir said that falling consumption, the slower-than expected recovery in the automotive sector, the zero-Covid policy in China and the slowdown of the economy have contributed to the fall in steel prices. Noting that the steel industry is affected by the current uncertainties and changing conditions, Mr. Özdemir stated that the Turkish steel industry also faces the trend of regionalization. Pointing out that the EU included Vietnam in the other countries’ quota for HDG, which includes Turkey, Mr. Özdemir said that Turkey will have to compete with Vietnam, which exports HDG in high tonnages to the EU, though Turkey will have a logistical advantage.
In addition, stating that the EU will apply antidumping duty within the range of 2-11 percent for HDG imported from Turkey, th eYıldız Demir Çelik deputy general manager added that the antidumping investigation initiated by Turkey against HRC from the EU will end in June, and that Turkey will apply an antidumping duty on HRC from the EU.
Besides the EU safeguard measures and the US Section 232 measures, recalling that Russia and Ukraine imposed export duty on scrap, Özdemir stated that, as the importance of scrap increases, new duties will be introduced, and that the EU is working on a carbon duty to be applied to imported products within the framework of its zero-carbon targets. He said that, since 70 percent of steel production in Turkey is based on electric arc furnaces, the country will be successful in the decarbonization trend, but that it will continue to face difficulties in the coming period due to initiatives such as safeguard measures.
Stating that the Turkish steel industry is performing well despite the trend of regionalization, Özdemir said that Turkey’s steel production in 2021 exceeded 40 million mt, while he expects the country’s steel production to increase to 50 million mt in the coming years thanks to the development of the domestic manufacturing industry and the increase in steel demand. He added that he believed that, despite the trend of regionalization, Turkey will continue to have a good position in the global steel market.