EghtesadOnline: Representatives of the Turkish steel sector are interested in developing lucrative cooperation with Iran, as steel trade between the two countries is on the uptrend.
The importance and advantages of trade collaboration were highlighted by Namik Ekinci, Turkish Steel Exporters Association’ (Celik Ihracatcilari Birligi, CIB) chairman, at the Iran International Steel Exhibition & Symposium 2017.
In 2016, Turkey shipped 128,000 tons of steel products to Iran, showing a 24% growth year-on-year, becoming the fifth largest steel supplier to Iran. At the same time, exports from Iranian mills to the Turkish market demonstrated a tenfold rise year-on-year totaling 210,000 tons in 2016, according to CIB.
The uptick in steel trade became possible as a result of the lifting of sanctions against Iran in early 2016, according to Financial Tribune.
In addition, Iran is currently emerging as a substantial steel exporter, especially to Middle East and North Africa region, gradually strengthening its positions as a supplier to the Far East.
Over the first 10 months of the current Iranian year ending January 19, Iran’s steel exports surged by 45% y-o-y, exceeding 4.4 million tons, according to the Iranian Mines and Mining Industries Development and Renovation Organization, as Metal Expert reported earlier.
The level of steel consumption in Turkey is expected to grow in the coming years owing to steadily developing steel-consuming industries.
“We believe that the needs and experiences of both countries can be mutually beneficial. Both Turkey and Iran can reach the highest levels once the sector representatives come together. Therefore, cooperation must be ensured by trade and investment partnerships,” Ekinci said in the official statement.
It is notable that 60% of Turkey’s steel exports to Iran are made up of rails and profiles. Since the Iranian government made railroad expansion a priority up to the year 2021, Turkish steelmakers can grab a considerable market share.