Türkiye imposes new import tariffs on some boron added galvanized products (PPGI)

From January 1, 2025, Türkiye P460ML1 steel will implement new import tariffs on specific boron added pre coated galvanized products (PPGI) by updating the Türkiye Tariff Table. This policy aims to control the import inflow of related steel products, especially competitive products from the Asian market, in order to protect the market share and economic benefits of the local steel industry. The government of Türkiye P460ML1 steel hopes to take this initiative to improve the balance between supply and demand in the domestic steel market and reduce the impact of imported products on local enterprises.

Specifically, a 20% import tariff will be imposed on PPGI products with tariff codes 7225.99.0.00.21 (thickness not exceeding 0.30 millimeters) and 7225.99.0.00.22 (thickness exceeding 0.30 millimeters), while a 15% tariff will be imposed on PPGI products under tariff code 7225.99.0.00.29. At the same time, the government of Türkiye still maintains 0% tariff on oriented silicon electrical steel products (directly supplied to relevant production facilities) used to manufacture transformer cores and transformers. This differentiated policy not only provides support for specific industries, but also reduces import dependence to a certain extent.

The tariff adjustment this time is more aimed at reducing the impact of imported steel on the supply and demand structure of the local market. The focus of the policy is to increase import costs, suppress the inflow of some competitive products in the international market, and protect the stability of the domestic market and the interests of steel production enterprises. At the same time, according to Mysteel data, as of December 27, 2023, the price of Türkiye's hot-dip galvanized steel (HDG) was 780 dollars/ton EXW. Due to the supply pressure on the market caused by weak domestic demand and the continuous increase of imported products, the price fell by 13% compared with the beginning of the year.

The implementation of this policy shows that Türkiye's P460ML1 steel government is trying to maintain the competitiveness of its steel industry through trade protection measures. However, the effectiveness of future policies will depend on whether domestic demand can recover and further changes in international market prices.