We have difficulty in competing with Far Eastern producers due to high costs

The Turkish steel sector, in addition to the problems caused by the Russian-Ukrainian war abroad, the quotas imposed by the US and the EU; Inside, it is having a hard time due to high energy costs.

22.01.2023 - 13:00

We have difficulty in competing with Far Eastern producers due to high costs

Domestic manufacturers have trouble selling the steel they produce by paying a price of 20-22 cents in dollar terms for one kilowatt of electricity, about twice the world average and losing 100-150 dollars per ton, domestically due to the Russians turning to the Turkish market and products from the Far East. Domestic manufacturers, who have no chance to compete in exports, urgently want new regulations in energy prices.

"Quotas and additional taxes create problems in the international market"

Atakaş, which produces flat steel in its facilities in the Payas district of Hatay, is one of the companies that closely feel the problems experienced by the sector. Mustafa Atakaş, the production manager of Atakaş Group of Companies, which carries out activities in the fields of steel production, coal trade and port services, evaluated the problems they have recently encountered as a sector. Stating that the increase in energy costs due to electricity prices is a serious problem, Atakaş said, "This situation has caused production costs to increase a lot and our sector has lost its competitiveness in the global market."

Atakaş, who made evaluations about the results of the protection measures, additional taxes and similar practices originating from the USA and the EU, which is another problem of the sector in the international market, said:

"As an export-oriented company, due to additional taxes and quota applications, we have started to have a very difficult time selling goods to our largest export markets. Since the products we produce are industrial inputs, our biggest markets are the countries where the industry is developed. The additional taxes imposed here push us to find alternative markets, but since flat sheet is a product that is mostly consumed in developed countries, we have a lot of trouble in this regard. What needs to be done in the short term as a solution is to create alternative markets, but we have difficulty in competing with Far Eastern producers with our high costs in that regard."