EU steel producers could face further production issues in the winter due to the energy crisis, which could increase the region’s demand for Turkish steel, Fuat Tosyali, head of the Mediterranean Ferrous and Non Ferrous Metals Exporters’ Union and chairman of Tosyali Holding, said Oct. 24.
Demand and supply have fallen globally, while raw material supply problems have increased amid high energy costs arising from the Russia-Ukraine war, he said in a statement.
“Especially global steel demand has declined substantially in the last 3-4 months,” he said. “But, the fall that Turkish producers faced was at a reasonable level compared to our rivals.”
Some opportunities could emerge with some risks, and Tosyali said Turkey could emerge as a reliable supplier to the EU, as the energy crisis might reduce EU steel output further.
Some major European steelmakers recently halted steelmaking or rolling capacities in Europe or announced planned stoppages or delays in equipment restarts, as a result of high energy prices and weakening market demand, particularly from the automotive and white goods sectors.
“If we manage the risks and evaluate the opportunities that will emerge in 2023 and afterwards, we could even exceed our export targets in the coming years,” Tosyali said.
Turkey’s steel exports, however, slumped 12.4% year on year to 11.1 million mt in the first eight months of 2022, according to the most recent data from the Turkish Steel Producers’ Association, while the revenue generated from those exports rose 8.8% to $10.5 billion.
Platts, part of S&P Global Commodity Insights, assessed Turkish export rebar at $670/mt FOB Oct. 21, down from an intra-year high of $960/mt FOB reached April 1.
— Cenk Can
