STEEL SUCCESS STRATEGIES: Turkey ranks third for steel growth, DCUD says

Growth in Turkey’s steel industry ranks third in the world behind only China and India, according to Veysel Yayan, general secretary of the Turkish Iron and Steel Producers’ Assn (DCUD).

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Production growth in Turkey was 39.3% between 2007 and 2012, Yayan told Metal Bulletin’s Steel Success Strategies conference in Istanbul on Thursday February 7.

The largest annual increase in crude steel production came in 2011, when growth was 17%, he added.

In terms of volume, Turkey’s position in world steel production rose from 17th in the 2000s to eighth in 2012, Yayan said, as a result of strong domestic demand and good management.

“Turkey continued investing even in crisis periods,” he said. “Crisis was an opportunity for the Turkish steel industry.”

The country’s crude steel production was 35.9 million tonnes in 2012. The target for 2013 is 38.5 million tonnes, Yayan added.

Slab growth slows
“Our slab production started to increase in 2007, when new capacities came online,” Yayan said.

“But the growth rate of slab production has slowed in the past couple of years because of increasing costs and market fluctuations,” he added.

“Difficulties in the EU economy are hurting Turkish flats exports to this region,” Yayan said.

But the Middle East-North Africa region (Mena) and Turkey could develop existing co-operation in flat steel because of the deficit of production in the Mena region and a surplus in Turkey, he said.

Egypt introduced a 6.8% import duty on rebar in December 2012.

“Turkey is not dumping in the Egyptian market,” Yayan said in answer to a question from the conference audience.

“Turkish exports into Egypt are falling. Turkish rebar exports into Egypt were 2 million tonnes in 2010, and went down to 450,000 tonnes in 2012,” he said.

Government support
But the Turkish steel industry is not getting support from its government, Yayan argued.

Egyptian electricity and labour costs are three times cheaper than Turkey’s he said.

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