The Ukrainian crisis creates new opportunities as well as negativities in the iron and steel industry. It is possible to reach a production capacity of 60 million tons in 2023.
Osman Arolat from Dünya newspaper evaluated the steel industry in today's article.
For the iron and steel industry, which is one of the areas that will be affected by the Russia-Ukraine crisis, General Secretary of the Turkish Iron and Steel Producers Association Dr. Veysel Yayan underlines that the Ukraine crisis will create new opportunities as well as negativities. If these new opportunities are realized, the production capacity of 54 million tons will increase to 60 million tons in 2023.
Yayan bases the positive and negative developments on the following reasons: -We used to buy flat steel, billets and slap from these countries. We also had scraps. When Ukraine brought a tax of 180 dollars and Russia 100 dollars, Turkey was adversely affected. This time, we turned to scrap purchases from the USA and EU. We also expect an increase in exports to the USA and the EU. We expect the USA to abolish the 25% tax imposed and to tie our exports to a quota like other countries. We hope that this expectation will yield a 'positive' result as they have stopped purchases from Russia. We believe that 1 million tons of exports to the USA and 6 million tons to the EU will increase due to the Russia/Ukraine crisis. For this reason, we do not think that the crisis will cause a serious negativity.
Dr. Yayan conveys the latest situation in production and export with the following words:
-Our production is 44-45 million tons. Our export is 20 million tons. There is an increase in input costs. With the resolution of the crisis, clearer results can be obtained. There is stagnation in the construction sector in the domestic market. However, we expect a revival in the second half of the year.
Emphasizing that he believes that the developments will lead to new capacity increase and new investments in the sector, Yayan states that they expect a production of 60 million tons in 2023.
Dr. Yayan states that due to the Ukraine Crisis, some negativities have been experienced in the field of iron, steel and scrap trade with these countries, and he believes that new opportunities will arise for our country from the markets where these countries are excluded. He underlines that they expect an increase in capacity and new investments in the iron and steel industry, as there will be an increase in both production and exports, and there will be a revival in construction in the country.
I also believe in the importance of ending the crisis as soon as possible, reviving the construction industry and removing the 25 percent tax imposed by the USA.
It is possible to understand how much the Turkish economy depends on external conditions from the iron and steel industry.
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