STEEL PIPE SECTOR REPORT (2017) TURKISH STEEL PIPE MANUFACTURERS ASSOCIATION

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1 STEEL PIPE SECTOR REPORT (217) TURKISH STEEL PIPE MANUFACTURERS ASSOCIATION

2 Steel Pipe Production in Tukey Turkey steel pipe production has gained significant momentum with investment in the sector in the early 2s. Steel pipe production, which showed a steady increase in the 2-27 period, followed a declining trend in 28 and 29 due to the global economic crisis, but continued to increase in parallel with the economic recovery in the following periods. Graph 1. Welded Steel Pipe Production in Turkey (Thousand Tonnes), Large Welded Small Welded Total Reference: CEBID In the year of 21, Turkey has become the largest producer of welded steel pipe in Europe with 3.5 million Tonnes of steel pipe production. Turkey is followed by Italy and Germany in Europe. Turkish steel pipe sector, which produced 5.21 million Tonnes in 216, remained Europe's largest producer of welded steel pipes. Among the 216 ranking of world steel pipe production, Turkey is the 4 th largest producer of welded steel pipes after China, Russia and South Korea. Given Turkey's place in Europe and in the world, it can be seen that Turkey has a significant place in the steel pipe sector. 1

3 Domestic Demand and Consumption Given the fact that domestic demand and consumption in the steel pipe sector are shaped by the general economy, developments and infrastructure investments in the automotive and durable consumer goods industries, especially in the construction sector, determine the demand for steel pipes. Domestic consumption, which was 1.3 million Tonnes at the beginning of the 2s, rose by nearly 47% to 1.9 million Tonnes in 21. Domestic steel pipe consumption in 217 was approximately 3.8 million Tonnes. The vast majority of domestic steel pipe consumption is small and medium sized welded pipes. There has been a significant increase in domestic consumption of steel pipes with realization of Trans Anatolian Natural Gas Pipeline Project that is passing through Turkey. Steel pipe consumption of Turkey for the period of is given in the chart below. Graph 2. Welded Steel Pipes Consumption in Turkey (Thousand Tonnes), Large Welded Small Welded Total Reference: CEBID 2

4 Export Turkish steel pipe industry, Given the fact that steel pipe export of Turkey is greater than its import in 217 realized production of 5 million Tonnes of steel pipe and it has exported 1.83 million Tonnes. Turkey's proximity to European and Middle East markets, products have caught the quality of world-class, industry studies as a result of many years as have many national and international reference projects acquired acquisitions are the most important factor being a net exporter sector of Turkey's steel pipe industry. Approximately 4% of production is exported in the sector, depending on developments and demand conditions in the international economic and political conjuncture. important destinations in Turkey's exports; The countries of the European Union are the USA and the Middle East. The amount of exports of welded steel pipes in period is given in the following chart. Graph 3. Welded Steel Pipes export of Turkey, (Thousand Tonnes) Large Welded Small Welded Total 3

5 Detailed information about Turkey s steel pipe export to world for 217 is given below. Table 1. Welded Steel Pipe Import of Turkey, (top 1 countries) Change (%) Countries Quantity Value Quantity Value (Tonne) (Thousand $) (Tonne) (Thousand $) Quantity Value Iraq ,74 19,2 UK ,36 27,2 Romania ,41 73,13 USA ,33-7,98 Germany ,4 54,95 Georgia ,79 3,56 Israel ,43 91,28 Italy ,78 117,62 Poland ,27 164,45 Belgium ,4 7,4 Top 1 Sum ,7 34,96 Total Sum ,37 26,68 It can be seen that, highest amount of steel pipe export has been made in Iraq, followed by Britain and Romania, respectively. In the year of 217, Turkey has exported steel pipes over 14 countries. The top 1 countries in which Turkey exported in the highest amount of steel pipe constitute 72% of total exports by quantity. A large part of Turkey's steel pipe exports constitute the pipes at small and medium sizes. Approximately 93% of exports in 217 consists of small- and medium-size pipe, while the rest covers large-scale pipes. Steel pipe export accounts for approximately 1.5% of total steel export in quantity, and approximately 11.6% of it in value. 4

6 Import In the early 2s, imports of steel pipes, which tended to decrease with investments made in the sector, decreased by 8% in 24 compared to the previous year. Despite the fact that there is sufficient production capacity and product range to meet the domestic consumption in the welded steel pipe sector, some pipe types continue to be imported. The reasons for this import are; imports of steel pipe products are exempted from customs duties, imports made under the preconditions of long-term recipient loans, and imports made on a project-based basis. Furthermore, import rate of seamless steel tubes that produced under Turkey's domestic needs has a significant amount. Import of welded and seamless steel pipes made in period is given in the following chart. Graph 4. Welded & seamless steel pipe import of Turkey (Thousand Tonnes), Welded Pipe Seamless Pipe Total In 217, imports of welded steel pipes were 27 thousand Tonnes and imports of seamless steel pipes were 275 thousand Tonnes. Most of the imports of welded steel pipes constitute large diameter pipes and construction pipes and profiles. 5

7 Table 2. Welded Steel Pipe Import of Turkey, (Top 1 Countries) Countries Quantity (Tonne) Change (%) Value Value Quantity (Thousand (Thousand Quantity (Tonne) $) $) Value China ,53-6,85 Greece , ,32 Kayseri Free ,56 15,64 Trade Area Italy ,73 15,24 Germany ,12 36,46 Vietnam ,86 91,1 Austria ,28-7,77 Taiwan ,3-13,1 Mersin Free ,12 61,97 Trade Area South Korea ,81-32,54 Top 1 Sum ,47-7,5 Total Sum ,51-5,42 In 217, imports of welded steel pipes decreased by 6.51 percent on volume basis to 27 thousand 461 Tonnes, while value basis decreased by 5.42 percent to 3 million 524 thousand dollars. In 217, half of the imports of welded steel pipes were made from China and Greece, followed by Kayseri Free Trade Zone and Italy. 6