Turkish steel maker worried over domino effect from US duties
Anti-dumping duties introduced by the United States have prompted concerns among Turkish steel sector representatives, who fear losing around $250 million-worth in exports, as well as knock-on effects in other markets.
The U.S. announced on Aug. 22 that it had approved anti-dumping duties against Turkey and other producers of steel pipes for the energy sector, marking a victory for domestic producers who hope to benefit from a recent boom in the shale oil and gas industry.
Although subject to appeal, the decision puts the U.S. Department of Commerce closer to imposing tariffs as high as 118 percent on âoil country tubular goodsâ (OCTG), which are pipe and tube products used in the petroleum industry.
Veysel Yayan, General Secretary of the Turkish Iron and Steel Producersâ Association, said the decision âlacks any strong basis.â
âThere is no company in the sector that can make a 20 percent profit, but a 35 percent duty will be implemented. They [the U.S.] make these kinds of decisions to protect producers in their own country,â Yayan said.
Yayan said Turkeyâs steel exports to the U.S. stands at 300,000 tons, equivalent to $250-$260 million-worth in sales, but warned that these numbers could be thwarted by the new decision.
He also highlighted a risk in other countries following the U.S. in limiting their imports from Turkey.
âCanada may launch an investigation within this framework. There is an ongoing legal process in Australia. Morocco had opened an inquiry into Turkish steel, but it has closed the file. However they re-reopened the investigation and decided to implement dumping duties. Countries are influenced by each other and make these kinds of...