Overcapacity threatens to redraw the steel industry due to the unsustainable current price of goods, according to Turkish Steel Exporters’ Association Board Member Ali Pandır, speaking at the 19th Middle East Iron and Steel Conference.
Adding the problem has long endured in the global steel industry, he said it is crucial for the companies to consolidate and stated this may even require the shutdown of some mills even in China.
Pandır continued his remarks by expressing that the protectionist policies have become a trend in virtually every country of the world, except Turkey.
The comments were met with claims that Turkish steel producers are subsidised and that the devaluation in Turkish Lira helped Turkish steel producers reduce their costs, Pandır explained the Turkish steel industry cannot be subsidised pursuant to the ECSC Treaty signed in 1996 and that the prices are kept low only because of the increase in effective production, intended to make the country more competitive.
A consortia of 23 Turkish steel exporters from 18 Turkish steel companies held 250 meetings with 45 companies during a trade mission organised parallel to 19th Middle East Iron and Steel Conference.
The exporters, who have carried out a number of projects in Dubai, visited the UAE with the purpose of further existing trade relations on a trip organised by the Turkish Steel Exporters’ Association as a part of URGE Project of the Turkish Ministry of Economy.