Steel production may stop in October or November

Evaluating the warning letter sent by the USA to Turkish business organizations regarding the sanctions, Steel Exporters' Association (CIB) Vice President Uğur Dalbeler said, "Russia's playing field has narrowed." Uğur Dalbeler reminded that Canada will impose sanctions on steel products produced with Russian raw materials or intermediate goods.

Stating that many sectors doing business with Russia, especially the steel industry, will be affected by possible sanctions, Dalbeler stated that there will be problems in the export of products imported from Russia in the coming period, after they are processed in Turkey, and that Canada, for example, started this practice. Dalbeler said that Russia's playing field has narrowed and the only market for Russia is Turkey. He stated that Russia reduced the prices of the steel it exports to Turkey, which negatively affected the competitiveness of the domestic producer in Turkey. Dalbeler said that if no action is taken in the upcoming period, they may stop their activities in October or November due to the weakening of their competitive power.

Canada takes the first step

Dalbeler stated that Russian steel producers have taken an even more aggressive stance in the Turkish market due to the sanctions they face in the USA and EU, and they are trying to increase their activities in Turkey with dumped prices well below the market. He underlined that this situation creates a very serious unfair competition environment and creates irreparable damages especially for Turkish manufacturers who do business with the EU and the USA and care about the sanctions.

On the other hand, Dalbeler stated that another danger is that products produced with Russian raw materials and intermediate goods may face sanctions in the future, and that Canada has announced that it will impose sanctions on steel products produced with Russian raw materials or intermediate goods. Stating that Canada has started a “circumvention” in construction steel in this direction, Dalbeler emphasized that similar investigations are likely to start in the EU and the USA for other products, and therefore Turkish manufacturers should pay attention to this issue.