Consequences arising from the ongoing anti-dumping investigation on imports of hot-rolled flat steel products from China, India, Japan, and Russia could have a substantial impact on Turkey’s white goods exports and employment, according to Turkish white goods manufacturers association Turkbesd.
The dependence of the white goods sector on cold rolled steel, derived from hot-rolled flat steel, emphasises the need for a thorough assessment of the potential consequences of the investigation, says Turkbesd board member Mehmet Yavuz.
The association also emphasises the crucial need for Turkey to establish an Emission Trading System (ETS) linked with the EU. Collected revenue should be allocated towards green transformation as well as for future exemptions from the Carbon Border Adjustment Mechanism (CBAM), Kallanish notes.
Meanwhile, export incentives must be continuously developed to support exporters in the EU and related markets, especially in competition with Far Eastern counterparts, according to Fatih Özkadı, deputy chairman of Turkbesd.
In 2023, the Turkish white goods industry was vital on account of the domestic market, offsetting export challenges. The continuity of domestic consumers’ purchasing power was therefore essential for stable growth, the association says.
Promoting the widespread use of energy-efficient products is envisioned to bring benefits to both the country and consumers, according to Turkbesd president Gökhan Sığin. “Reducing the number of credit card instalments and increasing loan interest and commission rates prevent energy efficient products from reaching more consumers. If energy efficient products dominate the market, a total of 6 TWh of energy can be saved, equivalent to the one-year production of the Keban Dam,” Sığin notes.
Turkey’s white goods domestic sales of six main products increased by 14% compared to the previous year, while exports from Turkbesd member companies declined by 10% in 2023.
The combined total sales, comprising exports and domestic sales for these six main products, reached approximately 33 million units in 2023, reflecting a 4% decrease compared to the previous year. Concurrently, the overall production volume also saw a marginal 1% decrease.
The decline in exports during the year was primarily due to the contraction in foreign markets, says Sığin. Despite this, domestic sales have played a significant role in balancing the export decline. With the crucial importance of domestic sales, amid global risks affecting exports, maintaining Turkey’s production and employment levels in the white goods sector in 2024 is achievable on account of the strong domestic market, Sığın adds.
Turkbesd comprises both local and international member companies, including importers and manufacturers such as Arçelik, BSH, Dyson, Electrolux, Haier Europe, LG, Miele, Samsung, SEB Groupe, Versuni (Philips), and Vestel.
Turkey is Europe’s largest and the world’s second-largest white goods production hub with an annual production capacity of 32.3 million units and an export capacity of 23 million units.
Turkey’s cold rolled flat steel imports increased 58.3% on-year in November 2023 to 67,805 tonnes, while Asian countries became major suppliers, achieving a cumulative share of 54%, compared to only 4% a year earlier (see Kallanish passim). Therefore, some Turkish cold rolled flat product end users have expressed concern over the impact of a potential CR flats antidumping investigation on their sourcing ability.
The significant increase in Turkey’s flat steel imports prompted domestic flat steel producers to call for an investigation into hot rolled coil imports from China, Russia, Japan, and India in October last year.
Elina Virchenko UAE