Türkiye's wire rod imports increased by 82% in the January-July period compared to the same period of 2022, rising from 323,942 tons to 592,611 tons, according to data from the Turkish Steel Producers Association.
According to a SteelRadar analyst's special assessment, the increase in wire rod imports weakens the competitiveness of Turkish steelmakers.
Russia, Malaysia and Egypt have been the most notable contributors to the increase this year. While Russia showed an increase compared to last year, Malaysia entered as a new import market.
Egypt, on the other hand, increased from 24/t to 95,598/t in the last seven months
With tax advantages and cheap energy, low figures took place in the market. There is no advantage for those who do not purchase with DIR (Internal Processing Regime).
Exporting companies need to complete the production in a short time and re-export it. This situation has turned into a disadvantage by causing problems for some importing companies.
With the decline in export demand, those who could not complete the process bought at the same levels as Turkish prices.
Turkish producers await urgent protection
Turkish steel producers, on the other hand, said that they were unable to be competitive in prices due to the recent 20% energy hike and faced a lack of demand in Turkey's domestic market.
The already weak export demand, on the other hand, has led to a further squeeze in the Middle East and Europe. When the cost of stocking was added on top of this, the sector was almost cornered. An urgent action plan is expected from the Turkish Ministry of Trade. Although it is known that there are negotiations in the lobbies, no official announcement has been made yet.
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