Turkish rolling mills face raw material and Inward Processing Regime duration problems

Our news article, which was created from the market visits carried out by SteelRadar and the comments of expert market representatives, gave voice to the problems in the activities of rolling mills. Profile, angle and bar rolling mills operating in Turkey expressed some of the issues that they have difficulties in production.

Raw material and energy costs exhausted rolling mills working for the domestic market

The founders of the well-established companies of the market stated that in some regions it is impossible to produce from billet due to the cost of transport, so they use ship sheet. The companies working only for the domestic market stated that there are serious supply problems in ship sheet and that they cannot use billet due to the cost. They stated that with the increase in energy costs, the monthly large amount of invoice payments put the sector in a further deadlock, but with the recent improvement, they took a breath. While explaining that the products made from ship sheet serve different sectors to users in the domestic market since they cannot reach the quality required for export, the low prices of large producers made it difficult for us to be competitive. The fact that the iron-head producers of the steel sector also concentrated on the domestic market due to the weak demand in exports forced the rolling mills that currently serve only the domestic market.

Rolling mills that have reached a certain level in exports emphasised that Inward Processing Regime periods are insufficient

Many companies that produce billet products and are successful in exports have growing problems with the Inward Processing Regime periods. Market representatives told SteelRadar that they have difficulty in exporting quickly after importing and processing billets due to the lack of demand in exports and short-term processing records, and that increasing this process to at least 6 months would greatly relieve the producers; 'In the difficult market conditions, increasing the Inward Processing Regime periods to 6-8 months will greatly relieve our hands and we will be able to provide more efficient services to the Turkish steel market'.