Turkish pipemakers aim to export over 2mt in 2015, after hitting 2014 target
Turkish pipemakers have repeated calls to remove import duties on flat steel. This would help provide the raw materials they need, if they are to achieve their goal and surpass 2 million tonnes of pipe exports in 2015, they say. It comes after 2014 pipe exports rose 4.9% year-on-year to 1.95mt, despite political instability in some major export markets, Kallanish learns from Turkey’s Steel Pipe Manufacturers Association (CEBID).
The value of pipe exports in 2014 declined 0.7% to $1.63 billion, while Turkish pipe production stayed around the 4mt mark. Following unfavourable developments in pipe exports in the second half of 2014 - most notably caused by the turmoil in Iraq - the 28% y-on-y growth in December exports to 206,221t gives hope for improvement in 2015, CEBID observes.
Notwithstanding the insurgency in Iraq, the country remained Turkey’s main destination for pipe exports in 2014, after a strong performance in the first half of last year. However, it still took in 26% less pipe in 2014 at 348,715t. The US followed with 331,464t, up 18%, while the UK came third with 240,209t, up 46%. Romania was the final country to import a six-figure tonnage from Turkey at 128,180t.
In December alone, Turkish pipe exports to the US surged 75% to 61,333t, while shipments to Algeria, Lithuania and Israel rocketed 117%, 100% and 120% respectively to 11,651t, 10,289t and 9,013t.
CEBID secretary general Mehmet Zeren says Turkey will use the logistical and strategic advantages of its geographical location to boost production to 4.5mt and exports to over 2mt in 2015.
“However, it will be difficult to reach the target of $7.9bn worth of pipe exports set for 2023 unless the problems with raw materials supply in our industry are resolved,” Zeren comments. “Flat products import duties should be removed, so that we are provided the opportunity to buy raw materials at global market prices.”
So will they not hit their target if the import duties are not lifted? Why are the import duties there to begin with? How long have they been there? Is there a review period for an import duty, e.g. after 12 months it gets reviewed? Maybe naive questions...
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Anonymous
Very good overview of the weekly steel market.
Anonymous