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Turkey Steel Sector Could Face Losses after Cuts to EU Quotas - Mr Adnan Aslan

Steel News - Published on Tue, 17 Sep 2019

Image Source: Reuters
Reuters reported that new restrictions on imports to the European Union next month may further damage the Turkish steel sector, even as it seeks new markets to compensate for losses from US and EU tariffs, Turkey’s Steel Exporters’ Association chief said. Turkey’s steel sector has come under pressure from an economic slowdown which has taken its toll on the construction, automotive and white goods sectors, driving down steel consumption by 31% in the year to July and production by more than 10%. CIB Chairman Adnan Aslan told Reuters in an interview that steel exports, already down 0.8% to USD 9.4 billion in the year to end August, will fall to $13 billion in 2019 from USD 15.6 billion last year.

In February, EU quotas for 26 grades of steel were set at the average level of imports in 2015-2017 plus 5%, with further 5% hikes due in July and in July 2020. Imports of steel beyond these quotas are subject to a 25% duty. But the European Commission later cut this year’s quota increase to 3% from 5%, effective October 1. It also limited any one country to a 30% share of imports of hot-rolled flat steel per quarter.

Mr Aslan said the move will lead to a contraction in Turkey’s flat steel and rebar exports. He said that “We can see the limitations are aimed at curbing imports from Turkey,” Aslan said. “It is not understandable why the EU... wants to limit country-based imports. We filled the quota for long products in a month. We switched to a new one-year quota in July. We will most likely complete that in September. Because the quotas are full, Turkey will not be able to export long products to the EU until July 2020.”


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Posted By : Ratan Singh on Tue, 17 Sep 2019
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