Turkish pipe mills are facing a threat of lower competitiveness due to
the antidumping investigation against HRC imports to Turkey.
Possible protective measures against HRC imports in Turkey might result in
higher purchases of domestic products at higher prices, which will negatively
impact Turkish pipe makers, Turkish Pipe Producers Association (CEBID) reports.
In addition, the absence of import restrictions on pipe imports in Turkey could
lead to an "inflow of foreign pipes" and tighten competition in the
local market. Competitiveness of pipe mills in exports could also be hurt,
according to CEBID prognosis. "In 2014, Turkey produced over 4 million t
of steel pipes, exporting about 45% out of the total tonnage. We have set
higher goals for 2015. Dumping investigation is a concern and our production
and export targets are under risk. Many sectors might be forced to make [HRC]
purchases from domestic producers," CEBID president Ahmet Erciyas says in
the official statement. Besides, if antidumping duties are imposed, producers
expect a more strict control over export license usage, which involves tax-free
feedstock imports in case of comparable finished product export sales.
Trade restrictions on HRC imports in Turkey, if imposed, might also result in
counter-investigations in some countries against Turkish welded pipes exports.
"Turkish pipe makers will prefer to use their export licenses for cheaper
HRC from CIS, Japan, China. European tonnages will most probably be substituted
by local material at higher prices," one big trader told Metal Expert. As
a result, Turkish pipe makers might be forced to keep local prices high while
offering much lower levels to foreign outlets due to cheaper import HRC
purchases for export production. Given that the expected prices difference
might be at least $70-80/t, a number of importers (such as USA, UK, Germany)
could initiate antidumping cases against Turkish pipes.
In 2014, Turkish pipe makers, according to CEBID data, purchased around 4.5
million t of HRC feedstock with 71% share of locally produced material. On
January 28, Turkey announced the start of antidumping investigation against HRC
imports from seven countries – France, Romania, Slovakia, Ukraine, Russia,
Japan and China. HRC supply from the mentioned destinations accounts for approximately
90% in Turkey's total imports.