Turkey's imposed temporary safeguard measures entail a $175 per metric ton charge on wire rod imports for 200 days, aiming to shield the domestic industry. Countries like Afghanistan, Argentina, the Philippines, and Belarus receive exemptions while facing a quota. This move tightens wire rod import opportunities, impacting market dynamics and potentially driving domestic prices upward.
Turkey recently released its initial findings from a safeguard measure investigation impacting alloyed and non-alloyed wire rod imports, unveiling a temporary safeguard measure of $175 per metric ton for 200 days, detailed in the Official Gazette. The investigation highlighted an import surge posing a potential threat to the local industry.
Under this measure, imports from numerous countries, including Afghanistan, Argentina, the Philippines, and Belarus, face a total tariff quota of 45,665 metric ton, exempting them from the temporary safeguard measure. However, the significant tariff rates for regularly-imported origins and limited quota availability may restrict viable wire rod import opportunities, altering market dynamics.
The imposed measures are anticipated to alter trade patterns significantly. Duty-free origin imports like those from Egypt and Malaysia might dwindle in the Turkish market due to increased tariffs. Sales from Russia might cease unless suppliers adjust prices to account for the $175 per metric ton tax. Quota dynamics might prompt supply diversification, potentially involving Belarus or Russian-origin supplies labeled as Belarus or Kazakhstan-origin goods.
With restricted import options, the Turkish wire rod market foresees potential price hikes, prompting concerns among traders. These shifts could impact local industries and consumers negatively, potentially driving up costs.
Data from the January-September 2023 period reveals Turkey imported around 620,000 metric tons of wire rod, primarily sourced from Malaysia, Egypt, and Russia, with Spain, South Korea, the UK, and China following suit.
Turkey's imposition of temporary safeguard measures on wire rod imports aims to protect its domestic industry. However, this move could alter trade patterns, limit import sources, and potentially escalate local prices, signaling potential challenges for both suppliers and consumers in the Turkish wire rod market.