• Our members, who has fully service centers as in whole of the world are complementary and last station of stainless steel production
  • We inform all stainless steel area about our activities
  • We need first of all ‘’integrated stainless steel production’’ instead of re-rolling. For this theme please take care the message of our president for 2017
My Friends who have adopted the Stainless Steel Culture,

''The instability and flatness in International Stainless Steel Platform in 2015 started to positively affect the international markets in 2016 but our country could not keep pace with this development unfortunately. For this reason, we need to revise our targets for 2017 reasonably.”

Both political tensions and economic stagnation and uncertainty in the Middle East, Europe, Ukraine and Russia, that is, Turkey's export markets caused the stainless steel industry to revise its export target for the year 2016. “The companies were expected to continue their search for foreign markets in the year 2016 as well; it was unfortunately not possible to achieve the targets. The stainless steel industry will keep working, increasingly, to achieve its export targets in 2017.” Its success depends especially on the end of the political instability in the Middle East. But it is predicted that this situation will not end positively until 2020.

Since Turkey, whose stainless steel import is near 520 thousand tons a year, failed to achieve her export targets for the year 2016, this failure has weakened our targets and estimations for the year 2017 as well. Considering that more than half of our exportation is processed in the existing steel service centers, we see how important the Service Centers are.We have to say that every year almost 100 thousand tons of products are exported indirectly in finished products. Our industry employs almost 300 thousand people indirectly. Besides, we must remember that 65 percent of these enterprises have direct and indirect relations with PASDER members in supply chain. In Turkey, per capita stainless steel consumption is 6 kg a year (exports included). Considering that the annual per capita stainless steel consumption is 20 kg in Japan, which leads the developed countries today, and 14 kg in the European Union countries, it is possible to say that Turkey has a high chance of growing in the stainless steel consumption.

“There is no integrated production in Turkey”

The constant share of Turkey in the global stainless steel market which is 1.2 percent based on import figures of 2016 is unchanged. In other words, it can be said that “There is no stainless steel integrated production in Turkey, and it seems impossible to start such production in the near future.'' The basic reasons of this include the condition of the market, the idle capacity existing in the world, the insufficient supply of the raw materials required for investment in Turkey and the fact that they are more expensive comparing to other countries, excessive energy needs, and the long enterprise rate of return and amortization periods caused by high investment amount.”

The molten stainless steel capacity in the world is 65 million tons a year as of 2016, but the actual liquid stainless steel production amount is approximately 30% less. The liquid stainless steel production is around 44 million tons in 2016. The fact that the idle capacity is 20 million tons indicates that the integrated investment must not be done in our country, for now. Likewise, it is known that China is accountable for 53 percent of the global production capacity, and that "this percentage reaches 72 percent together with the other Asian countries". The actual production of South Korea is around 5 percent. Besides, South Korea's hot rolled flat products production facilities in the PRC have limited production. There is a considerable increase in the cold and hot rolled stainless steel products imported from South Korea to our country under the Free Trade Agreement that entered into force on May 1, 2013. The reason for that is increase of customs tax imposed on import made from other Far East countries from 8% to 10%. Thus, it caused decrease of the import made from Far East countries other than South Korea. The increase in prices of stainless steel imported from South Korea is an asset in terms of profit for South Korea, but the industrialists in our country pay for it. The customs tax stipulated to be an income for our treasure is way too less than the expectations due to significant decrease of the taxed import. For this reason, this subject should be reviewed once more and if possible the tax should be canceled or decreased significantly.

“The rise in the customs tax has been reflected on prices”
Transforming the stainless steel imported from Far East countries other than South Korea by paying a customs tax of 10% into products by our industrialists has caused a significant increase in the costs and for this reason the export possibilities of our products have decreased. The fact that prices of stainless steel stipulated to be imported without tax from South Korea are more expensive than other Far East countries by a rate which is near to the customs tax rate has put our industrialists under stress. This situation caused price increases in stainless steel products used as intermediate goods or investment goods. In Turkey, numerous industries, white goods, kitchen utensils, machinery, shipbuilding, food and chemical industries in particular, have been suffering from the rising costs. While this situation affects the export competitiveness and market shares of the companies in the said industries negatively, the price increases in the domestic market create inflationary pressure.

"Stainless Steel Price Movements"

The increase and instability in the prices of the alloy elements in the year 2016 have eventually turned into a descent and ascend period in the prices of two important alloy elements: CHROMIUM and NICKEL. For this reason, the increase in stainless steel prices in the last quarter of 2016 has negatively affected the industry. In this way, the instable price movements have irritated the industry considerably, as usual. Wrong estimates may cause irrecoverable damage to the industry. Speculative acts, wrong purchasing and selling policies, but more seriously, the economic practices intended for saving the day only will be an earthquake for the platform. Apparently, the industry can preserve its vitality and persistence with smart and correct estimates and considerable and serious planning, if necessary, even if far from the expectations.

Note : Please take the statistics "worldproduction of crude stainless"
under the web : www.worldstainless.org
2001 to 2014 fully years and 2015/9 months

I wish good work, health and success for all participants of the industry in the year 2017.



Stainless Steel Association - January 01, 2017

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