IRON and STEEL
Turkish steel consumption continues to lag significantly behind 2018, with exports also at risk of slowing significantly in the near term as protectionist measures bite, Turkish iron and steel producers' association secretary-general Veysel Yayan said today at an industry event in Istanbul.
But the association expects the decline to be less than 20pc by the end of the year, as a result of a modest recovery in the second half of 2019. Consumption fell by 25.8pc year on year in January-September to 18.9mn t, driven by a 42pc fall in January-May. The decline has been driven mainly by lower long products demand, with consumption of longs in Turkey at 7.8mn t compared with 12.9mn t in January-March 2018. Flat steel consumption is down by 12pc at 11.1mn t.
As a result, Turkish steel exports — most of which have gone to Europe — climbed to 13.4mn t in the nine-month period, from 12.1mn t a year earlier. But the increase is the result of higher exports in January-June and volumes have since slowed as a result of protectionist measures. Exports to the US have practically halted, Yayan said, adding that the decline in exports might accelerate in the coming months.
At the same time imports into Turkey are at a multi-year low, yet their share of domestic consumption has increased. Imports in the first nine months stood at 8.6mn t, down from 11.3mn t on the year. Imports of flat steel fell to 5.4mn t from 6.2mn t in January-September.