The Indian government's move to lift export taxes on steel may allow mills to increase their capacity utilization, but the recovery in exports and the course of prices will depend on a recovery in demand. So what awaits the Turkish steel industry in this situation? We asked the market representatives and we have compiled the answers for you.
How will the Turkish steel industry be affected by India's lifting of steel export duties?
The first comment to İnşaat Noktası, one of the leading representatives of the market ; It was 'depends on how aggressive they can be in the very short term'. Of course, they will want to export, but since they lose the markets they constantly export to, they first start there, he added.
He said, 'There are several different production methods, sponge manufacturers generally give low prices, but they cannot meet the quality at the beginning of our producers' sensitive points. So we have to wait and see for a while. Even before the export ban, they were giving offers to Turkey. I think it could be an alternative if they give it again. Of course, provided that the domestic market moves.
The market representative, who is a global markets expert, said, “On the export side, India was already exporting alloy steel types. It was also sold to Turkey. In this context, it will not affect the works to be done in Turkey. However, one of the biggest impacts is the demand for scrap. As their production will increase, the demand for scrap will also increase. Competition will increase in Europe, especially in flat products. He ended his comment.
An official from one of the leading producers of the market told Insaat Noktasi , "With the loss of many export markets, which is worrying for Turkish steel producers, it is inevitable that we will see an India with an appetite for scrap. Two troubles awaiting the producers, who are already going through a difficult process, are at the door;
1) Indian mills with a high appetite for scrap will raise scrap prices
2) Concomitantly, there may be serious problems with the product," he commented.
Another of the market experts' opinions is, “They can re-enter the Turkish market. This can have a serious negative impact on the flattened producers. But if prices in Asia continue the recovery curve, it will have no effect in the short term. It was in shape.
Another market representative made the following comment: The only parameter that stopped the import scrap price decline in October is the heavy scrap deals made by India when there was no demand from us. In addition, while the production amount has decreased in Turkey, China and even all over the world, India is at the top with +6%. They have an advantage over us and Europe in energy and production costs. If export appetites are high, there will be an impact.
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