It was reported Turkey’s government has announced to increase import tax on rebar and wire rod, aiming to protect domestic steel industry from cheap and poor quality imports. This will cause some impact on China exports.
Chinese steel mills mostly adopt BOF steelmaking process, while Turkey produces by electric furnace with scrap as raw material.
The international iron ore price index fell to USD 80 per tonne, while Turkey’s scrap import price is about USD 330 per tonne thus the production cost of Chinese steel mills is lower than that of Turkey. Besides, coupled with export tax rebates on boron added rebar and wire, Chinese products are more competitive in Turkey market.