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Saying that Turkish steel pipe manufacturers’ potential for exports to the EU is very high though the quota measures in the region have limited Turkey’s exports to the region, Mehmet Zeren, general secretary of ÇEBID, stated that, despite all these measures, nearly half of the country’s exports are to EU countries and the UK. Turkey’s proximity to the region and timely delivery gives the country an advantage. Iraq had been Turkey’s second most important market in 2020, but Turkey’s exports to Iraq decreased in 2021 due to pipe investments in the country and duties on imports, he noted.

“In 2021, there was a significant increase in the production of small diameter pipes used in areas such as the construction and structural steel industry, the automotive industry, and the furniture industry. Our production of large diameter pipes used in natural gas and water transmission lines decreased. Regarding large diameter pipe production, the insufficient quota allocated by the EU for these products and the customs duty imposed by the US within the scope of Section 232 caused a decrease in the exports of this product group. Meanwhile, our producers face exchange rate risks since domestic public tenders are made in Turkish lira, whereas the hot rolled coil products we use as raw materials are sold in dollar terms, even if they are from domestic producers. For this reason, our companies are reluctant to take part in public tenders, and as a result there is a decrease in large diameter pipe production,” Mehmet Zeren said regarding the product segments.

CEBID estimates that the EU’s quota measures and the US Section 232 duties will continue this year and will continue to negatively affect the Turkish steel pipe industry. Regarding the domestic market, the association stated that a differential pricing implementation should be introduced in public tenders for electricity, natural gas, pharmaceuticals and petroleum products that will protect producers against exchange rate risks.