Kaya stated that the adverse impact of the crisis continues to affect the sector, adding that the iron and steel companies along the Gulf of İskenderun, which supply half of the country’s iron and steel needs, suffered a drop in production of approximately 18 percent between January and September compared to the same period of last year. The decline in production and exports is seen not only in Turkey but throughout the world, he said, explaining that Russia, Ukraine and several European countries have experienced a nearly 50 percent decrease in iron and steel production. “Only Iran, India and China have seen a production increase this year. Overall world steel and iron production fell by about 33 percent,” he said.
Stating that the decline in production in Turkey is less than that of other countries, Kaya attributed this to the measures taken last year to decrease the cost of the crisis on the sector. These measures are also in effect this year, he added. Kaya said the majority of firms in the sector will end the year without turning a profit; however, he added that they are hopeful for 2010.
The fluctuations in prices of iron and steel were not as sharp as those last year, Kaya said. The prices are around $400 to $450 this year, while this figure was as high as $800 last year, he explained.
The fall in production came about due to a drop in demand in foreign markets, Kaya stated, noting that exports fell both in quantity and value. The amount of money earned from exports in the first nine months of this year dropped by some 40 percent compared to the same period of 2008, he said. Demand for Turkish iron and steel in the US and Europe decreased significantly during the financial crisis, so most exports in this period were made to Egypt, Libya and Iraq.
Kaya also called for taxes on energy consumption by iron and steel firms to be abolished, saying, “There is a 4 percent tax on our energy consumption, which goes to projects that are unrelated to the sector, such as TRT or municipality funds, which is a serious burden on our companies.”
