Turkish steel fears US move
ISTANBUL – Turkish steelmakers yesterday said US imposition of tariffs on imported steel would have a devastating effect even if Turkish firms were exempted. US officials said yesterday the country would impose duties of up to 30 percent on most steel products, although the Washington Post reported that imports from Turkish firms would be exempt from the tariffs. Veysel Yayan, head of Turkey’s steel body, said producers from other countries would turn to alternative markets where Turkish firms operate as a result of the move. «These companies’ focus will turn to markets where we are influential… Such a redirection of traffic in iron and steel will have a devastating effect.» Turkish steelmakers export mostly to the European Union, South Africa and the Middle East. He said a US decision to impose tariffs may also provoke reciprocal action by other countries. «But anyway the first such action has come from the EU.» The European Union said yesterday it would have no alternative but to react to the US decision. The White House said President George W. Bush was to announce a decision late yesterday. Turkish steelmakers exported some 800,000 tons of steel to the United States in 2001, Yayan said. Some 67 percent of the exports were long steel, 32 percent flat steel and one percent low-quality steel. US steelmakers say the country has become a dumping ground for excess overseas steel production, and have demanded a 40-percent across-the-board tariff for four years on a broad range of steel imports to protect the domestic industry. They blame low-priced outside competition for 31 company failures since 1997. Turkey exported some 9.4 million tons of steel in 2001, up from 6.9 million tons in 2000, as producers switched to exports after a deep economic recession slashed domestic demand. Sener Macun, general manager of Eregli, Turkey’s only flat-steel maker, told Reuters yesterday that his company would maintain original targets it had set for exports to the US market. «I don’t believe the decision will include Turkey. Therefore we aim to maintain exports to the US at 250,000 tons, the same level we achieved in 2001.» Eregli shares were unchanged at 18,250 lira on the main Istanbul index in yesterday’s trading. Washington has said it will do what it can to help Turkish exporters as the country works to emerge from its deepest economic slump since 1945. But other Turkish steel stocks came under pressure yesterday. Celik Halat was down 3.37 percent at 4,300 lira and Burcelik fell 4.84 percent to 5,900 lira.
