TCUD: High power prices decrease competition of Turkish steel sector

According to a statement released by the Turkish Steel Producers' Association (TCUD), in September this year crude steel production in Turkey decreased by 19.0 percent year on year to 2.7 million mt, while in the January-September period the nation's crude steel production amounted to 27.3 million mt, dropping by 9.3 percent year on year.In the January-September period, Turkey's ended up steel usage fell by 5.2 percent to 24.1 million mt, while in September alone completed steel intake in Turkey lowered by 3.2 percent to 2.1 million mt, both year on year.In September, Turkey's steel exports reduced by 31.2 percent to 1.4 million mt, while the worth of these exports fell by 42.1 percent to $1.1 billion, year on year. Turkey's steel exports in the January-September duration stood at 12.5 million mt, down by 15.0 percent year on year, while the worth of these exports pertained to $11.7 billion, up by 0.2 percent year on year.In September, Turkey's steel imports enhanced by 0.8 percent to 1.1 million mt, while the value of these imports relocated down by 6.5 percent to $1.1 billion, both year on year. In the first 9 months this year, steel imports reduced by five percent to 11.3 million mt, while the value of these imports boosted by 17.6 percent to $12.4 billion, both year on year.In the first 9 months of the year, Turkey's steel export to import proportion lowered to 94.5 percent, from 110.8 percent videotaped in the very same period of the previous year.According to the TCUD, the rise in the share of electricity and gas in prices from 8 percent to 30 percent triggered a considerable decrease in the competition of the Turkish steel market in the domestic and also foreign markets. This led to minimized shifts at plants as well as some manufacturing halts at plants. The decline in the competitiveness of the Turkish steel sector was likewise mirrored in the export figures. The TCUD specified that these growths, which led the capacity application price to decrease from 75 percent to 60 percent, reinforce the possibility of production proceeding to lower in the last quarter this year. In this context, it was specified that multi-dimensional actions should be taken to end the negative program taped in the Turkish steel industry which the application of different gas tolls for commercial markets ought to finish.

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