Turkish White Goods Manufacturers Association (TURKBESD) shared the export, production and sales figures for the first three months of 2022 and the developments in the sector with the public at an online press conference.
Turkey’s white goods exports in March in six main product groups, 11 percent compared to March of the previous year. increased. In the first quarter, it increased by 6 percent in terms of units. 6.5 million units were exported. On the other hand, domestic sales decreased by 9 percent in the first 3 months of the year.
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Turkey exports 75 percent of its white goods production!
in 6 main products Total sales including domestic and export on the other hand, it was 8,688,496 units, with an increase of 2 percent compared to the previous year. It has a huge ecosystem with 60 thousand direct and 600 thousand indirect employments. The Turkish white goods industry exports 75 percent of its production. emphasizing TÜRKBESD President Can Dinçer said:
“Our industry has performed very well both in exports and in domestic sales, especially in the last two years when we struggled with the pandemic. While our domestic sales contracted due to the high base effect in the first three months of the year, our exports continued to increase, albeit at a slower pace.
Globally effective inflation, developments such as war involving countries that are important raw material suppliers, cause an increase in raw material prices, especially flat steel, and negatively affect our competitiveness in exports.”
Stating that increasing freight costs, energy and oil prices, the Russia-Ukraine war caused high metal, steel and plastic prices and supply problems, Dinçer underlined that they had a difficult year due to the ongoing problem in chip supply, the Russia-Ukraine crisis and raw material prices.
It is calculated that the production cost of white goods will increase by up to 16 percent due to the rise in HRC prices. According to independent studies, a 16 percent increase in input costs may cause an export loss of approximately 750 million dollars in the white goods sector.
Flat steel production in Turkey is below the domestic market’s needs
Pointing out that Turkish steel producers surpassed Germany in 2021, they became Europe’s largest and the world’s 7th largest crude steel producer. TÜRKBESD Deputy Chairman of the Board of Directors Semir Kuseyri said:
“The war between Russia and Ukraine and the sanctions imposed on Russia further increased the demand for steel products of Turkish origin. Of course, this is a positive development. On the other hand, 2.8 million tons of the 11.3 million tons of HRC produced in our country are exported.
The need of the domestic market is 14 million tons. The tension in Russia and Ukraine, which are among the most important supply sources of the user sectors, necessitated the rapid diversification of supply sources. Hot rolled coils procured from countries included in the Ministry of Commerce’s investigation are also an input to the production of high quality sheets.
The dumping measures for these products are worrisome in terms of the possible inflationary effect it will create not only for the white goods sector, but also for all manufacturing sectors that use flat steel in their production.”