Page 83 - TURKRptOct19

9.1.10 Metallurgy & mining sector news
Turkey’s crude steel production declined by a sharp 10.6% y/y to 2.9mn tonnes in July, business group TCUD said on September 5.
In the first seven months of the year, total output amounted to 19.9mn tonnes, marking a 10.2% drop compared to the same period of 2018.
Local steel consumption plunged as much as 31% on an annual basis to 14.5mn tonnes in January-July as overall economic activity—particularly in the construction sector—slowed in the recession-hit country.
Export volume increased 5.7% y/y to 1.9mn tonnes in July, but the export revenues of local steel producers declined 4.5% y/y to $1.4bn because of lower global prices. In January-July, steelmakers shipped 13.1mn tonnes of product to foreign markets, making for a 13.5% y/y rise, while their revenues from exports inched up 0.7% on an annual basis to $9.7bn.
Turkey’s steel production was 37.3mn tonnes last year, making the country the eight largest steel producer in the world. In 2017, the country’s steel output was 37.5mn tonnes.
Turkish steel exports endangered by EU steel quotas response to closed US market. Turkish steel exports could be impacted by a decision taken by EU governments to approve limits to steel quotas designed to protect European manufacturers from surging imports following the effective closure of the US market.
A large majority of EU countries voted to back changes proposed by the European Commission on September 4.
For the past year, the EU has used a system of “safeguard” measures to control incoming steel following Washington’s imposition of 25% steel import tariffs.
Quotas for 26 grades of steel, including stainless, were set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes due in July and in July 2020. Imports of steel beyond these quotas are subject to a 25% duty.
The Commission proposed that this year’s hike should be 3% effective from October 1. It was a response to industry complaints that a weak market cannot absorb increasing imports.
EU steel association Eurofer estimates apparent steel consumption, which includes inventory changes, will fall by 0.6% this year and rise by 1.4% in 2020, Reuters reported.
83 TURKEY Country Report October 2019 www.intellinews.com