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“Global steel production capacity increased rapidly in 2000s, and the increase continues – especially in developing economies, due to government incentives,” the ministry said.
“The increase is expected to reach 2.4 billion tonnes in 2017,” it added. “The share of [this volume supplied by] countries outside the Organisation for Economic Cooperation & Development [OECD] will be 71%.”
Despite the significant increases in capacity, steel consumption will increase only moderately in the next few years, and the overcapacity may affect production flow negatively, the ministry said.
Volatility of input costs and increasing import volumes are other factors that must be considered.
Turkey has become a net importer of steel because of all these factors, so the ministry is watching the sector closely, the statement said.
The steel sector is of strategic importance to Turkey’s economy, the ministry added, and precautions such as new regulations on imports and trade policies will be brought in to protect the industry.
The Turkish Steel Producers’ Assn (TÇÜD) has also complained about Turkey becoming a net importer of steel.
Turkey’s economy ministry is planning to change some regulations in its import regime to protect the country’s steel sector from harmful import volumes, the ministry said on Wednesday July 27.