Steel market is at stake in the USA

Steel Sector in USA

The steel sector, which accounts for 7 percent of Turkey’s total exports, suffered export losses due to anti-dumping investigations in various countries; Attempts by the US to limit the imports of steel, which is the largest export market of the sector, could further impose Turkish exporters.
According to President of the Association of Steel Exporters (ÇIB) Namık Ekinci, indicating that there has been a steady decline in steel exports to the US since April due to the uncertainty surrounding the import restrictions, Turkey may face the danger of losing exports to this country for more than $ 1 billion annually .
US President Donald Trump initiated an investigation into the issue of steel imports in April that threatened American national security. According to the “Section 232” law, which permits the sector to be examined, import taxes or quotas can be imposed if national security threatens.
Trump said in July that the final decision on steel would be delayed until other priority issues were resolved.
Last week, however, the issue came to the rescue, prompting the directors of 25 of the US steel industry’s companies not to immediately limit imports from Trump.
In an interview with Reuters, Ekinci said that Turkey’s steel exports to the US have fallen since April, when import restrictions are on the rise. “Uncertainty has already caused a fall in exports, and all of our steel exports to the US can become dangerous if the mentioned restrictions apply ” said.
According to the information given by Ekinci on the basis of the data of ÇIB, 261 thousand tons of steel exports to the US in April were 240 thousand tons in May, 147 thousand tons in June and 114 thousand tons in our fences.
While Turkey is exporting 2.3 million tons of steel to the US in 2016 amounting to 1.1 billion dollars, US was Turkey’s largest export market on a country basis.
“US producers prefer to accuse Turkey of exporting status in order to sell goods at higher prices in their own country markets, when US producers are shrinking their profits,” he added, adding that US steel producers are unfairly accused of increasing their profit margins. :
“We are also being subjected to accusations and investigations unfairly, and as Turkish steel exporters, we do not export dumping or state-sponsored products to any country in the world.”
The US Department of Commerce brought anti dumping and countervailing duties to some Turkish firms at various rates after anti-dumping and countervailing tax investigations against imports of Turkish origin ribbed construction steel in the last few years.
In May, the final decision of the United States to investigate imports of Turkish steel construction steel was decided to be dumping and state-sponsored. Turkish steel exporters carried these decisions to the WTO.
According to the CRI survey, the price of construction steel, which is 606 dollars / ton in the domestic market excluding VAT, is 555 dollars / ton in the domestic market.
According to the information given by Ekinci, the current situation in the US does not apply import tax for Turkish construction steel. However, as a result of the investigations, anti-dumping tax and compensatory tax are applied to Turkish firms at varying rates.
Bearing in mind that restrictions imposed by the US on the steel sector will cause damage to its own economy, Ekinci noted that artificial price increases will also cause difficulties for the US steel consuming industry.
According to the information given by Ekinci that Turkey is the biggest market for scrap exports of the US, Turkey imported 3.2 million tons of scrap from the US in 2016, Imports in the first six months of this year were 1.5 million tons.
Ekinci said that despite the unjust actions against the fair trade in the world and the instability in the export markets and the instability in the export markets, Turkish steel sector exports increased by 15 percent in the first seven months. “In January-July period, steel exports increased by 15.3 percent to 10.9 million tons, Increased by 30.8 per cent to 6.6 billion dollars, “he said. Ekinci said, “We are expecting to complete the increase in quantity by more than 15 percent in 2017. The dollar-based increase will be around 25 percent.”
Ekinci said that the increase was due to the slowdown in exports of China, the world’s biggest exporter, and the rising demand for flat products in EU countries, as well as exports by Turkish firms to the markets that were leaving it.
The steel sector, with its exports of $ 9.1 billion in 2016, is Turkey’s fifth largest exporter, accounting for about 7 percent of Turkey’s total exports.
16.5 million t in 2016