Despite the existing risks, there may be new opportunities for Turkey's steel industry, said the president of the Mediterranean Association of Ferrous and Nonferrous Metals Exporters (ADMİB). Fuat Tosyali also noted that the country is becoming a reliable supplier in energy-intensive sectors at a time when Europe will face problems this winter.
“It is likely that Europe will experience production problems due to the energy crisis. We expect a significant increase in demand for iron and steel products,” he said.
According to Tosyaly, global problems with the supply of raw materials have not yet been resolved, and, in addition, higher energy and commodity prices as a result of Russian -Ukrainian war led to a reduction in both production and supply.
He added that global demand for steel has been declining in the past three to four years, but the fall in demand for Turkish products is at a "reasonable" level compared with its competitors.
"We are watching for new opportunities that may arise." Europe is having trouble with green transformation due to the energy crisis, but the Green Deal still has ambitious goals, Tosyaly noted.
“We are taking the first steps to match the changes that the world takes in production processes. We want to reap the benefits of these steps in the coming period. If we could properly manage the risks that will arise in 2023 and beyond, our steel industry could surpass its export targets,” he said.
The share of iron and steel in Turkey’s export earnings, which in January -September amounted to 188 billion dollars, amounted to 16.7% or more than 28 billion dollars.
Exports of ferrous and non-ferrous metals in the first nine months of 2022 amounted to 11.1 billion dollars, which is 26.5% more than for the same period in 2021. In September alone, the industry's exports showed an annual increase of 3.6% to $1.2 billion.
In line with weaker global demand, exports of local steel producers decreased by 31.3% in September compared to last year to $1.8 billion, while steel exports grew by 8.7% year on year in January-September to $17 billion.
In September, Germany was the largest export market for the ferrous and non-ferrous metals sector, which purchased from Turkish manufacturers of goods for 235.5 million dollars. Exports to Romania amounted to $193 million, followed by Israel at $164 million.