Uğur Dalbeler: Exchange rate stabilization of great importance for Turkish mills

Uğur Dalbeler: Exchange rate stabilization of great importance for Turkish mills

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Commenting on the effects of exchange rate fluctuations on the Turkish steel industry on Turkish television, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association, stated that, although Turkey’s steel export performance was good in the first five months this year, since the country has to import intermediate goods and raw materials the fluctuations in the exchange rate caused problems on the cost side for Turkish producers, and therefore the stabilization of the exchange rate is important for the industry. Considering the upward prices trend, Uğur Dalbeler estimated that Turkey’s steel export value at the end of 2021 will exceed the $16 billion recorded in 2018. Mr. Dalbeler stated that, with the improvement of conditions, in 2021, there will be an increase of approximately 8 million mt in Turkey’s steel production capacity, which will make Turkey the leading steel producer in Europe and the seventh biggest steel producing country in the world in the long term.

Regarding Turkey’s steel exports to the US, Dalbeler stated that there has been an increase in exports to the US since Trump’s aggressive attitude on steel imports did not continue, though the protectionist policies of the country will continue.

Regarding Russia’s decision to increase its scrap export duty rate from €45/mt to €70/mt, stating that the steps taken by the country to protect its local steel industry and remain competitive are noteworthy, Uğur Dalbeler said that Russia is trying to protect its local market not only with import duties like the US and Europe, but also with the obstacles it puts in the way of exports, so that the raw material stays in the country.

Dalbeler stated that the increase in commodity prices in the global market was due to the imbalance between supply and demand, when demand returned after the pandemic.

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