The Turkish government has announced that it will restrict steel exports to Israel until the country commits to a ceasefire in Gaza. This measure, which comes into effect today, April 9th, will affect 54 product groups including steel, iron, marble, cement, aluminium, and more.
The restrictions will only be lifted once a ceasefire is in place and the "unhindered" flow of humanitarian aid into Gaza is permitted. This move by Turkey was prompted by Israel's recent refusal to allow Turkey to participate in a recent aid air drop operation.
Turkey is one of the world's largest steel exporters, and Israel has been a major destination for Turkish steel, particularly rebar.
In 2021, Turkey exported 1.8 million tonnes of steel to Israel, with rebar accounting for 1.18 million tonnes. However, these exports declined in 2023 to 1.15 million tonnes total and 728,362 tonnes of rebar.
The export restrictions will put significant pressure on Turkish steel producers, who are already facing falling domestic demand due to the country's ongoing economic problems. Many end-users in Turkey are delaying orders until after the recent local elections, and steel mills are operating at reduced capacity while offering additional discounts to secure sales.
Overall, this move by the Turkish government to restrict steel exports to Israel until a ceasefire is reached is expected to further strain the already subdued Turkish steel market.
