“Expecting very strong growth rates in our local market would be too optimistic,” he said, “but the growth in exports will continue.”
The prices of flat steel products will continue to rise as long as demand remains strong, Üstün said.
“The current increase is due to both the increasing raw materials prices, and production cuts in East Asia,” he explained. “If raw material prices remain strong and China continues to limit production, prices will keep strong. So, the steps taken by China are the most important factors in determining prices in the global markets.”
There is great pressure on Chinese steel producers for environmental reasons, he added. Some companies have had to shut down production, and some have had to reduce their capacity utilisation, prompted by official concerns about pollution levels.
If these limitations were removed, there would be renewed oversupply, with more material being exported, and this would result...