Turkeys Steel Import Demand Surges After Earthquake
Steel NewsDate: 13-07-2023 by: Ngan Le
After experiencing severe earthquake damage in February, Turkiye has begun to increase steel imports to rebuild infrastructure quickly. In the first 3 months of the year, Turkiye became the world's No. 1 net importer with a trade deficit of 55%.
1. Türkiye increased steel imports to rebuild infrastructure
According to data from the Turkiye Steel Manufacturers Association, the ratio of steel exports to imports here has fallen to 55%. The reason for the significant difference between export and import volume comes from the government's policy of postponing the date increase in import tax on flat steel products on February 26, 2023.
Many sources say the delay will last until April 1, 2023. Turkiye steel producers met with the Ministry of Industry and Trade to discuss a plan to supply steel for construction reconstruction and rebuilding destroyed cities. Customs duties on the hot rolled coil (HRC), cold rolled coil, and galvanized steel will be increased from 6-7% to 15%, 17%, and 20% respectively.
The manufacturers' association is worried that this extending delay in import tax increases will imbalance imports and exports and slow the recovery of exports. In addition, construction steel prices in Turkiye have shown signs of increasing uncontrollably because many factories here have suffered severe damage after the earthquake, leading to domestic supply not meeting the demand for reconstruction.
2. Vietnam steel exports to Turkiye in the first 3 months of 2023
Following the trend of increasing steel imports from Turkiye, Vietnam also benefits from a part of the total volume of Turkiye steel imports. According to data from the General Department of Customs, in the first quarter of 2023, Vietnam exported 104,000 tons of steel, and this value increased 386 times over the same period last year.
Specifically, in the top of Vietnam's main steel export markets after the first two months of the year, Turkiye first participated with a total market share of 10%. The Vietnam High Commissioner in Turkiye said the earthquake had crippled the steel factory system here, but it would not significantly affect the import-export situation between the two countries.
Turkiye accounts for 10% of the total steel export market share in the first 2 months in 2023
It is expected that Turkiye will have to spend about 120 billion euros within 5 years to be able to rebuild the construction works in the country including 750,000 tons of coil and 1.25 million tons of steel plate. The reconstruction needs of Turkiye will be an essential mark to help Vietnamese steel enterprises further promote their steel export plans, contributing to removing difficulties in consumption when Vietnam's steel demand is weak.