Published On: Wed, Aug 22nd, 2018

Turkey’s iron and steel sector starts searching for new markets after sanctions by USA




Turkey breaks record in crude steel production in 2017

Crude Steel Production, Turkey – BusinessTurkeyToday.com

 

Iron and steel sector is very important for Turkey in terms of the contribution it provides to foreign revenues. However, as TRUMP introduces new sanctions against Turkey each and every day this sector was targeted by the US president once again. The US president announced on Friday with a tweet message that taxes introduced on steel and aluminum as of March would be doubled and applied as 50 percent and 20 percent.

The share of USA in Turkey’s total steel exports had dropped to 6.5 percent in first half of 2018 from 12 percent in 2017 due to high tariffs introduced by the US in March.

Therefore the final move to further limit the export potential of Turkish steel producers brings along the risk of losing the US market completely, for Turkish steel producers. Thus the sector has got down to work to absorb the loss to be incurred in US market.

The good news is Turkey’s two giant iron and steel producers Erdemir and Kardemir are not expected to be badly affected by this new situation because the export of these two companies to the USA is  less than 1 percent of each company’s total sales.

Then again a pressure may be experienced on prices because the production supposed to be exported to USA will stay in the country. This may also cause a burden for companies not exporting to USA even if indirectly. Thankfully Turkey’s iron and steel sector exports to nearly 200 countries. Nevertheless the companies have already started to search for new markets and are supposed to be checking on regions such as West Africa with the support of the Turkish Trade Ministry.





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