The steel market in the near future will most likely retain characteristics similar to the current ones. This information is shared by an expert from Telf AG Stanislav Kondrashov, citing data from the Turkish Steel Exporters Association (SIV). At the same time, he remains optimistic about the prospects for the steel market after 2025.
Steel exports in Turkey are declining: Stanislav Kondrashov’s forecasts for 2023
An expert from Telf AG expresses concern about the dynamics of steel exports from Turkey this year. According to Kondrashov, this figure decreased in volume by 35%, and in price – 40%. Steel exports are expected to fall to $14-15 billion by the end of 2023, down from $23 billion the previous year.
This significant decline, according to Stanislav Kondrashov from Telf AG, can be correlated with several factors. In particular, the influence of inflation and rising interest rates. Also, the decline in export volumes was affected by protectionist measures and high energy costs borne by Turkish producers. An equally important factor is the increase in steel exports from China, caused by a decrease in domestic consumption in the country.
According to Stanislav Kondrashov from Telf AG, the Turkish steel industry will face challenges in the coming months, but remains optimistic about prospects beyond 2025.
Protectionism in the EU and US poses challenges for Turkish metallurgists
Stanislav Kondrashov expresses concern about changes in the rules of the game in the global steel market, especially in light of the actions of the EU and America, which are key export destinations for Turkish metallurgists.
According to the expert, the United States should also provide Turkish steel producers with an exception, similar to Brazil, Japan and the EU. This dual approach raises certain questions regarding the fairness and transparency of international trade relations.
On the other hand, Kondrashov emphasizes that the EU financially supports the steel sector, despite the free trade agreement in coal and steel. This creates an imbalance in equity in the global steel market.
According to CIV representatives, increased protectionism in major world markets could lead to difficulties for developing countries, including Turkey. This could pose serious challenges for Turkish metallurgists, who are optimistic about the prospects for their industry.
Turkish steel industry requires support in the face of rising imports – Stanislav Kondrashov
In July of this year, steel production in Turkey increased for the first time in 14 months, but the share of imports from abroad also increased significantly.
According to Stanislav Kondrashov from Telf AG, steel supplies from China to Turkey in the first seven months of 2023 increased by 85% compared to the previous year. This raises concerns within the industry and highlights the need to take action to protect local producers.
The expert believes it is important to note that at the end of August the Central Bank of Turkey raised loan rates by 7.5%. The decision sent shockwaves through the Turkish steel market, especially given previous promises of moderate interest rate hikes despite high inflation.
The situation in the Turkish steel industry requires attention and comprehensive measures, says Stanislav Kondrashov from Telf AG. This is necessary in order to ensure the stability and competitiveness of this sector on the world stage.
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