London — While the recent hike in US import tariffs imposed on Turkish steel surprised the market, steel producers in the country will find other ways to export their products, the CEO of a major steel company in Turkey said Tuesday.
The steel executive, who has asked not to be identified, said that he was confident that Turkey will find other outlets for its finished steel products as global demand good overall.
"China's domestic consumption is good and it's also not aggressive on the export side," he said, leaving further scope for Turkish export sales.
The Asian market has received further attention as of late, with two steel-producers selling larger volumes of rebar to Singapore and Hong Kong, while another steelmaker was heard to have sold a shipment to Singapore this week.
Nevertheless, the steel company CEO also noted that the focus will "not be tons, but dollars" as steelmakers after 2009 are more concerned about profit margins than the volumes sold into other markets.
Despite the recent plunge in the lira and chatter about less accessible dollar-denominated letters of credit to Turkish businesses, the last months saw strong margins and profits that allowed many steel companies to build up a good financial situation and a healthy business.
In the face of the current adversities, "mills are taking necessary steps," the executive said.
With regards to long steel products like rebar, the special designs and types available from Turkey including the steel products' quality certifications will always attract foreign demand, according to the executive.
In the last two weeks, export rebar prices have dropped by around $20/mt to $520/mt FOB on Tuesday amid trade tensions with the US and a slump in the lira.
