Posted on 14 Feb 2019
Turkish rebar exports to the EU may be slashed by -60% as a result of the bloc’s safeguard quotas, according to Namik Ekinci, chairman of Turkey’s Steel Federation.
Turkish rebar mills have reduced their capacity utilisation owing to reduced demand in the Middle East and the US in recent months. Now, with the EU implementing import quotas, their production could decline further, Ekinci is quoted as saying by Turkish media reports.
Turkish finished steel consumption declined -15% on-year in 2018 to 30.6 million tonnes, a drop equivalent to 5.4mt, according to the Turkish Steel Producers Association, or TCUD (see Kallanish passim). Finished steel output dropped only -1.1% to 38.6mt. The shallower output fall came as Turkish steel exports surged 20.5% in 2018 to 22.1mt.
Turkey’s most-exported steel product, rebar, registered a 9% rise in exports in 2018 to 5.95mt thanks to a very strong second half of the year after shipments fell -15% on-year in H1.
Turkish exports have been hit by a combination of increased regional production in the Middle East, one of Turkey’s traditional key markets, disruptions in global steel trade, and political turmoil, Ekinci said. Moreover, the US has imposed an “… unfair” 50% tariff on Turkish-origin steel imports, he added.
Turkish rebar exports to the EU reached 821,178t in 2018. The EU’s safeguard quota has allocated Turkey with 117,231t in the February-June 2019 period, 301,537t in July 2019-June 2020, and 316,614t for July 2020-June 2021 (see Kallanish passim).
Steel Federation did not respond to requests for further comment.
According to official European Customs data, all or most of Turkey’s rebar and wire rod quota is already exhausted, with material sitting at the docks, awaiting clearance (see separate story). The situation was anticipated in advance by the fact preliminary quotas in place until the end of January 2019 were exhausted well before 2018 ended.
TCUD said at the start of 2019 Turkey will need to increase domestic consumption, as well as implement measures to reduce imports’ share in consumption, as exports are likely to be hit this year (see Kallanish passim).
