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【Ferro-alloys.com】:At the“Economic Evaluation Meeting" held by the Turkey-based Aegean Ferrous and Non-Ferrous Metals Exporters

Association, it was stated that the value of Turkey's steel exports in 2023 declined to $14 billion compared to $21.62 billion recorded in 2022, due to the increase in energy, raw material and labor costs, quotas, safeguard measures and the fact that exchange rates do not increase in line with inflation. Stating that the Turkish steel industry has lost its competitiveness due to the increase in production costs, Yalgin Ertan, chairman of the association, stated that energy subsidies in the EU and high energy costs in Turkey compared to the Far East have resulted in the loss of the country's competitiveness in terms of price. “We want the government to provide an environment in which we can regain our competitiveness,” Mr. Ertan, said.

Stating that the share of the Turkish steel industry's exports in the EU market had decreased from 45 percent to 33 percent, Ertan stated that this decrease resulted in a decline in the utilization rate of Turkish liquid steel production capacity from 78-80 percent to 53-55 percent. Indicating that the interest/exchange rate/inflation balance should be established and that exchange rates should increase at the rate of real inflation in order to carry out production and exports, he pointed to the fact that 70 percent of the raw materials used in Turkish steel production are sourced from imports. He emphasized that it is important to encourage production and to increase exports with competitive production.

In addition, saying that the Turkish steel industry should focus on value-added production investments and renewable energy resources within the scope of works regarding the carbon adjustment mechanism, Ertan stated that easy access to finance and subsidies will support the industry.

• [Editor:Alakay]