ANKARA: Turkish ferrous metal exports experienced an increase of 4.5 percent year-on-year in 2014. The sector fell short of the export target set a year ago due to the political turmoil experienced by major trading partners and the depreciation of the euro against the US dollar, a local union reported.
During a press conference, Rıdvan Mertöz, the head of the Istanbul Ferrous and Non-Ferrous Metals Exporters’ Association (İDDMİB) said the amount of ferrous exports stood at $7.3 billion, a 4.5 percent increase compared to the previous year. Nevertheless, he added, the association has just set next year’s export target for the sector at 8 percent growth.
It has been a tough year for the metal sector as a result of the political and economic turmoil that erupted in neighboring countries last year and the depreciation of the euro — the currency used by 55 percent of exporting partners of Turkish metal producers — against the US dollar, Mertöz said. Underlining that producers pay for intermediary products and raw materials in dollars yet get paid mainly in euros, Mertöz noted that the profitability ratio in the sector has decreased to as low as 10 percent.
Another problem that continues to pose a problem for growth is, Mertöz continued, the exclusive contracts signed between Turkish contractors abroad and their local partners that make the purchase of intermediary products from countries other than Turkey obligatory. Though the association makes initiatives to promote domestic products to Turkish businessmen, he added, the contracts deal a huge blow to the sector anyway. In addition, the association warns the government not to introduce higher tariffs on sheet metal, a metal product that has long been under discussions to be subjected to high tariffs.
