Finish 2014 in line with its objectives in spite of the latest developments in the important exporting markets, particularly in Iraq, the Turkish steel pipe sector is waiting for a solution to the raw material problem. Being the biggest steel pipe manufacturer in Europe and the 5th biggest in the world today, Turkey exports approximately 45% of its total manufacturing. With this exportation amount, Turkey is ranked fourth in the world. Finishing 2014 in line with its objectives, the Turkish steel pipe sector is hopeful about 2015 thanks to an increase of 28% in exportation in December after the problems it faced in exportation during the second half of the year Despite the political developments in the important exporting markets, Turkey maintained its annual manufacturing level of 4 megatons in 2014. Last year, the exportation of the sector was 1.95 megatons on the basis of amount with an increase of 4.9% compared to the previous year, and $1.62 billion on the basis of value with a decrease of 0.71%. Launching an offence in terms of exportation in the last month of 2014, the Turkish steel pipe sector exported 206,211 tons on the basis of amount with an increase of 27.84% compared to the same month of the previous year, and $170,653,000 on the basis of value with an increase of 25.54%. This increase observed in December was promising about 2015. Mehmet Zeren, the Secretary General of Turkish Steel Pipe Manufacturers Association, evaluated 2014 with regard to the sector: “Despite all the problems we have faced recently, we, as the steel pipe sector, finished the year in line with our objectives. Not only did we manage to maintain our annual manufacturing level of approximately 4 megatons, but also exported nearly 2 megatons. Today, we are the biggest steel pipe manufacturer in Europe and the 5th biggest in the world. We export approximately 45% of our total manufacturing. This degree of exportation puts us fourth in the world.” The main problem for the sector, which is aiming for a manufacturing level of 4.5 megatons and exportation over 2 megatons this year, is the problems in raw material supply. If this problem is not solved, it will be a challenge for the sector to achieve the exportation goal of $7.9 billion determined for 2023. “THERE SHOULD BE NO CUSTOMS DUTIES ON RAW MATERIAL” Mehmet Zeren indicated that it is a necessity to enable raw material supply in line with world market prices by abolishing the customs duties applied for flat steel products, which is used as raw material in the sector, in order to overcome the raw material problem. Annual flat steel consumption in Turkey is in the range of about 14 megatons. Even though the production is approximately 10 megatons, approximately 2 megatons of this amount is exported. Thus, a demand of 6 megatons needs to be met by means of importation for the flat steel consumption in the domestic market. The steel pipe sector, which exports almost half of the production, wants to supply the raw material under proper conditions in order to maintain its success in exportation. However, the customs duties applied in the importation of flat steel products, which are used in the manufacture of steel pipe, are decreasing the sector’s competitive power. The Secretary General of ÇEBID, Zeren, drew attention to the fact that while low taxes are applied on raw material importation and high taxes on manufactured product importation in many sectors, there is a reverse implementation in the steel pipe sector.