Speaking to Turkish TV channel Bloomberg HT about the effects of the financing problem on the Turkish steel industry, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), stated that this problem has been ongoing for 2-3 months and has deepened with new developments in interest rates.
Saying that Turkey needs to grow in terms of exports, Mr. Dalbeler stated that the country is dependent on imports in both energy and raw materials segments, and that with the financing bottleneck, exports will become more difficult in the coming period. CIB vice president stated that the decline in global demand, especially in the Eurozone, which represents 50 percent of Turkey’s exports, and the effects of the war between Russia and Ukraine have significantly affected Turkish steel exports.
As for the declining raw material prices, Mr. Dalbeler stated that there is a bearish trend in commodity prices with the appreciation of the dollar, and that this is the main factor affecting raw material prices. Indicating that there is costly raw material inventory in the industry and that the producers are in a loss due to the current low prices, Mr. Dalbeler stated that access to credit and financing has gained more importance in this period in order to finance the raw material related losses of the producers. Considering these conditions, Uğur Dalbeler stated that exporters should be provided with some exceptions and especially supported by Eximbank for the growth of the Turkey’s exports and for producers to continue their operations without any restrictions in the upcoming period.