ISTANBUL: Turkey's crude steel output is expected to grow 6.5 percent in 2013 on the back of growth-oriented policies, a recovery in the construction sector and an improving outlook internationally, a sector official said.
Turkish Iron and Steel Producers Association (DCUD) General Secretary Veysel Yayan said steel output was seen at 38.5 million tonnes next year, whereas steel consumption was expected to increase 5.3 percent to 30 million tonnes.
"We expect growth friendly policies in the domestic market and the weakening effects of global crisis in the export market to determine whether the sector growth will be sustainable or not," said Yayan in his assessment for the coming year in emailed comments to Reuters.
Turkey is expected to produce 36.2 million tonnes of crude steel in 2012, up 6 percent from a year earlier.
Seeking to narrow a gaping current account deficit, lower high inflation and prevent the economy overheating, Turkey's central bank applied a tight monetary policy at the end of 2011 by tightening lira liquidity and raising its overnight lending rate.
"The expected increase in consumption will stem from a recovery in the construction sector, which accounts for almost half of the total consumption volume," said Yayan.
"The government's growth policies in 2013 will also help the manufacturing industry, which uses steel products as output," he added.
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