Mena Region as Export Location Challenges & Opportunities. Middle East Iron & Steel Conference - DUBAI

Transcription

1 Mena Region as Export Location Challenges & Opportunities

2 Crude Steel Production (2012) : Rank Country Production ( 000 mt) EAF (%) BOF + (%) Total 1546,8 29,3 69,6 1 China 716,5 10,1 89,8 2 Japan 107,2 23,2 76,8 3 United States 88,7 59,1 40,9 4 India 77,6 67,5 31,2 5 Russia 70, ,4 6 South Korea 69,1 37,6 62,4 7 Germany 42,7 32,3 67,7 8 Turkey 35,9 74,0 26,0 9 Brazil 34,5 23,7 76,3 10 Ukraine 33 4,5 69,4 Source: Worldsteel Association and World bank

3 Unbalanced Situation in Long vs. Flat : (9) 2013 (9) Production of Consumption of Production of Consumption of Production of Consumption of Production of Consumption of Long Flat Total The production has increased 4.8% compared to 9 months of The consumption has increased 8.4% in the same time period Domestic production in long products is around % 59 more than the consumption whereas the domestic production in flat products is fulfilling approx % 67 of the demand for flat products.

4 Unbalanced Situation in Exports and Imports : Export of Iron and Steel (1,000 tons) Billet & Bloom Slab Flat Long Total Import of Iron and Steel (1,000 tons) Billet & Bloom Slab Flat Long Total Source: Turkish Iron and Steel Producers Association

5 Distribution of Steel Exports acc. To Regions : Row Labels M EAST AFRICA EUROPEAN UNION LATIN AMERICA MENA NORTH AMERICA OCEANIA OTHER ASIA OTHER EUROPE SOUTH AFRICA WEST AFRICA Grand Total Source: Turkish Iron and Steel Producers Association The export volume of Turkey on Steel is increasing with more than 3% y-o-y change between 2012 & Middle East North Africa (MENA) is still the leading region on Steel Exports of Turkey. The share of MENA is %52.8

6 Breakdown of MENA Exports : M REINFORCING BAR BILLET PROFILE OTHERS TUBE WIREROD HOT ROLLED COIL Grand Total Source: Turkish Iron and Steel Producers Association Reinforcing bar is the main export item to MENA. (55.7%) (It was 49.6% in 2012) It is followed by Billets (13.0%). It was 23% in Wirerod export share is 3.5% in It was the same also in 2012.

7 Çolakoğlu Group : Çolakoğlu is one of the diversified conglomarates in Turkey involved in steel production, shipping, energy, mining and finance. Its steel company Çolakoğlu Metalurji is ranked in the top 20 in the industrial ranking, while its bank is ranked as number 6 in the finance sector in Turkey. Today the group employes 12,000 people.

8 Investments : Investment of Rolling Mill in Sütlüce Steel Trade in Karaköy Start-up of Hot Rolled Coil Production New Meltshop Investment Start-up of Rebar Production Start-up of Wirerod Production Start Selling to Export Markets Meltshop investment in Diliskelesi / Gebze Çolakoğlu s involvement in the iron and steel business began with the steel trade business started in Today with its 3 million tons crude steel capacity and 4 million tons of rolling capacity, Çolakoğlu is one of the leading companies in the steel industry.

9 Location:

10 Production Flow :

11 Production Capacities : Billet : Capacity : 2,500,000 mt Size : 130, 150 & 200mm Length : 6 16m Reinforcing Bar : July 2010 Capacity: 750,000 mt Size : 8 40mm Length : 6 16m Meltshop : Capacity : 3,000,000 mt Hot Rolled Coil (HRC) : June 2010 Capacity : 3,000,000 mt Thickness : mm Width : mm Slab : (July 2007) Capacity : 3,500,000 mt Thickness : mm Width : mm Length : 6 16m Bloom : Capacity : 120,000 mt Thickness : 220 mm Width : mm Length : 6 16m

12 Conclusion : The share of exported products to MENA region will change, but MENA region will continue its importance for the Turkish Steel Industry. Turkish steel industry will focus on more value added products. Increase on steel consumption per capita to the level of developed countries will trigger the steel consumption in Turkey and also in MENA region. In addition to the long products, flat steel will also be an important export product for Turkey in its export to main markets. Ability of shifting between long and flat products will bring competitive advantage to the Turkish mills without damaging the markets.

13