Turkey's production of long and flat products rose a combined
16.9% in the first quarter of 2012 against last year, figures
show, as home demand and exports remain resilient.
Data published by Turkish Iron & Steel Producers Assn shows
that the country produced 6.45 million tonnes of longs, up
19.5%, while the production of flat products rose 10.2% to 2.32
The 8.77 million tonnes of longs and flats combined represented
an increase of 16.9% compared to the same quarter of last
Consumption of finished products could reach to 6.9 million
tonnes by recording an increase of 7.4%, the association
estimates, of which 3.51 million tonnes were longs and 3.38
million tonnes were flats.
"In spite of all stagnation in [the] European Union, the local
market as well as other export markets could boost our
production of long and flat products significantly in first
quarter of 2012," one trader said.
"We recorded an increase of about 20% for production of long
products in first quarter which is a satisfying growth. We
could raise production of flat products by a rate half of the
rate for long products as Turkish long products are more
competitive both in local and foreign markets.
"There is an expectation for rising production of steel in
coming months by Turkey as we are close to Turkish construction
season while there is a flourishing market for Turkish steel in
the Middle East and North Africa."
One economic advisor of a Turkish steel maker said that the
country's traditional role as a supplier to other countries'
construction projects could in future see an emphasis on its
domestic market, particularly infrastructure and housing. But
intense pricing competition internationally may mean the
country's mills need to address its typical offer levels.
"Naturally both of those two derivatives - foreign and local
markets demand - could boost our production of long products
fairly. [But] we are not able to record a rate of 20% growth
for flat products as our prices are not so competitive yet."
"Now you can see that the local market also has been occupied
by cheap materials from [the] CIS [region]."