Increase in import tariffs

Increase in import tariffs:

Turkey announced on December 31, 2023 an increase in import tariffs on some stainless steel products. In particular, the import tariff on cold rolled stainless steel coils was raised to 12% from 8% in 2023. This decision took effect on January 1, 2024.

Anti-dumping duty investigation and proposal:

Turkey’s largest producer of stainless flat steel, Posco Assan TST (a joint venture between South Korea’s POSCO Steel and Turkey’s Kibar Holding), has asked the Turkish Trade Ministry to open an anti-dumping investigation into imports of stainless steel from China and Indonesia.

The producer has proposed a 20% anti-dumping duty on imports of stainless steel products from China and Indonesia, arguing that these imports of low-priced, sub-standard stainless steel are affecting Turkey’s domestic steel production.

Imports & Sources:

According to the latest data from the Turkish Statistical Institute (TURKSTAT), Turkey imported 307,000 tons of cold rolled stainless steel flat steel in 2023, of which 220,000 tons originated from Asian countries, especially China and Indonesia.

Market Impact:

Posco Assan TST has posted losses every year except 2022 since its inception in 2013, has faced competition with low-priced imported stainless steel for 10 years, has incurred losses of $200 million, and has seen its capacity utilization rate drop to 45%.

Without further action, the company could be at risk of closure.

Tariff policy controversy:

While there are voices calling for an increase in anti-dumping duties to protect domestic producers, there are also arguments that Turkey should produce its own stainless steel to replace imported stainless steel, rather than simply raising tariffs.