We talked with Gokhan Erdem, Sales and Marketing Director at Çolakoğlu Metalurji, about the potential impact of the new EU steel import quotas on Turkish exports and European steel consumers. ,
,As you know, the EU has revised its steel import regime, reducing the steel import quota allocated to Turkey in the HRC 1A category by 60 percent. Ultimately, the greatest costs and risks associated with this measure will be borne by steel consumers in the EU. European consumers will have to assess the additional costs they will have to incur in order to continue their operations in the future and assume the increasing risks to maintain their operations in these conditions.
As domestic steel prices in the EU continue to rise, the resulting price burden on steel consumers may also lead to an uneven cost impact in EU member States, depending on their respective steel production capacities. Turkish steel exports to the EU will continue, albeit at a lower level, but most of the additional costs will eventually fall on the shoulders of EU-based steel consumers.
Another factor is that as the impact of CBAM becomes more tangible over time, the advantages of Turkish production in terms of carbon footprint, geographical proximity, quality, purity of steel and reliability of imports will create additional pressure on steel consumers in the EU.
Following these trends, the Turkish steel industry has the opportunity to adapt to the steel export markets due to its experience in applying such measures and its ability to respond quickly and flexibly to changing conditions. As the impact of the new measures becomes more apparent over time, higher costs in the EU will continue to put pressure on EU labour markets. In addition, among the potential consequences of this process may also be more significant structural shifts, such as the relocation of steel producers from the EU outside the region.
Author: Editorial staff of SteelOrbis
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