Page 55 - TURKRptJun20

9.1.9 ​Metallurgy & mining sector news
The Turkish steel industry’s exports in terms of volume fell by 34% y/y to 877,000 tonnes from April 1 to April 20​, while revenues were down 35.7% y/y to $574mn, said Adnan Aslan, head of the Turkish Steel Exporters’ Association, on April 27.
In the first quarter of 2020, revenues from steel shipments declined 15% y/y to $3.1bn.
“Pre-pandemic orders are keeping production going presently, we have not received new orders for some time. Sometimes customers even cancel their orders. If the outlook does not improve, local companies will have to suspend production,” he said.
Aslan noted that the local steel industry had already taken a hit from protectionism.
In a tit-for-tat move, Turkey has informed the World Trade Organization (WTO) that it intends to impose import duties on certain steel products from the European Union​.
The communication ​sent​ to the WTO, on May 25, stated that Turkey plans to impose additional import duties of 9-17% on the products concerned.
The products to be affected include hot-rolled flat steel, cold-rolled flat steel and coated flat steel.
In mid-May, the European Commission opened an investigation into whether Turkey is dumping hot-rolled flat steel products in the European Union.
Turkey was the top source of finished steel product imports into the EU in 2018, with a surge of 65% y/y to 6.17mn tonnes.
The European steel industry’s apparent steel consumption was down 5.3% last year, the worst performance since 2012, according to the region’s steel association Eurofer.
The coronavirus (COVID-19) pandemic has further undermined business activity with key steel users such as automakers shut down. Steelmakers such as ArcelorMittal have shut blast furnaces in response to the lack of demand.
Eurofer filed the complaint that led to the probe into Turkey. It said in April that EU steel production was reduced by around 50% with new orders lower by 70-75%.
Eurocrats are warning that massive stockpiling of steel during the pandemic crisis could later result in a flood of products into the EU when demand returns.
The EU acted in 2018 to control incoming steel to protect European producers after Washington’s imposition of 25% steel tariffs meant the US market was no longer an option for many exporters.
9.1.10 ​Other sector news
At €9bn in value Turkey is the third largest exporter of clothes to the EU said​ Eurostat​. The EU imported clothes worth €154 billion [$166 billion] in 2019, just over half of which came from non-EU Member States (52%, or €80 billion).
55​ TURKEY Country Report​ June 2020 ​ ​www.intellinews.com