Speaking at the panel, Ali Sezen stated that Europe-based supply is increasingly under pressure and that war and environmental policies are transforming supply chains.
“Supply is shrinking in Europe due to the defense industry”
Sezen pointed out that the Russia-Ukraine war had a serious impact on production balances in Europe and stated, "Some plants in Europe, especially in Germany, had reduced their capacity. However, due to the war and the needs of the defense industry, these facilities returned to production. This is causing a contraction in scrap supply in exporting countries. In the medium term, this may result in various restrictions."
Stating that these developments pose a serious risk for Türkiye, Sezen continued, "These restrictions will not come into effect immediately, but it is a very big problem for Türkiye. Finding new sources is now a necessity."
“Scrap prices fall sharply, peace talks to play critical role”
Referring to the price fluctuations in Türkiye's domestic market, Sezen stated, "In the last two months, scrap prices have suddenly dropped by 20-30 dollars. Global political developments also played a major role in this decline. Factors such as the Trump tariffs imposed by the US in the past are still felt in the market."
He explained his expectations for the coming period as follows: "My prediction is that prices will maintain their current levels. However, possible Russia-Ukraine peace talks could have a serious impact on the scrap market."
“Venezuela and Africa could be alternative scrap suppliers for Türkiye"
e“ Sezen also shared examples of new sources of supply, recalling that he realized the first scrap export from Venezuela to Türkiye in 2018, and stated, ”Venezuela currently stands out as a new source with an annual potential of 1.5 million tons.
Stating that the African continent could also be an alternative region in the long term, Sezen stated, “However, local infrastructure and systems need to be established first for healthy scrap supply from Africa.”
“Scrap tax with Ukraine on the agenda”
Referring to an important negotiation regarding the supply of scrap from Ukraine, Sezen stated, "We have been negotiating a free trade agreement with Ukraine for about 10 years. In these negotiations, we demand that the scrap export tax imposed on Türkiye be abolished or at least reduced."
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