Asian and African demand to support global steel investments: Tat Celik

Global steel demand, which could increase by 150 million mt within the coming 25 years in line with expected rise in population in Asian and African countries, will support global steel investments in the coming years, Ayhan Ucar, purchasing director of one of Turkey’s largest coated coil producers, Tat Celik, said at the EUROMETAL Steel Day conference held in Istanbul April 27.

“To meet the expected rise in steel demand, new investments should be made,” Ucar said, adding they have already focused on new value-added steel investments.

Noting that they have more than doubled their production capacity in the last five years to 1.5 million mt, Ucar said with the new galvanizing line investment, which is expected to start soon, their hot-dip galvanized coil output capacity will increase by 650,000 mt.

Tat Celik will produce galvanized coils up to 4 mm and wider than 1600 mm on the new line.

The company’s existing galvanizing line has a capacity of 800,000 mt/year. Tat Celik also has a 200,000 mt/year pre-painted coil and 200,000 mt/year cold-rolled coil capacity.

Highlighting that they are exporting their products to more than 70 countries, mainly Europe and North African countries, the director said they are aiming to expand their export destinations.

“We are facing difficulties in competing with Asian producers due to our high costs, especially energy,” Ucar said, noting that with the ease of energy costs and the rise in Turkey’s flat steel output they could regain their competitive strength.

“The increase in domestic steel production could also reduce Turkey’s flat steel imports,” he observed.

Low-priced imports and slow demand have been pressuring Turkish mills’ steel pricing in recent months.

Platts, part of S&P Global Commodity Insights, last assessed the Turkish HDG price at $980/mt ex-works April 21, down from the 2022 high of $1,400/mt reached in mid-March.

Author Cenk Can