Current State of the Hot-Dip Galvanizing Sector: 2017 Review, 2018 Outlook

Iron and steel products, if unprotected, corrode and cause structural degradation, waste of natural resources, and loss of labor, capital, raw materials and manpower. Hot-dip galvanizing is a complementary service sector at this juncture. It protects finished iron and steel products against corrosion by coating them with zinc. Galvanized iron and steel products have extended service lives, thereby conserving natural resources and protecting the national economy. Corrosion protection of steel also adds distinct value to it. Galvanized coatings are used in energy, transport, building and construction, fasteners, agriculture, livestock, maritime, street furniture, park and garden equipment sectors. Finished iron and steel products undergo surface cleaning steps before being immersed in a molten zinc bath at approximately 450°C. In this way, a metallurgical bond forms between steel and zinc while all product surfaces are coated to provide protection. Galvanized coating has many advantages. Under current conditions, the most important of these are environmental friendliness, economy and long service life. Zinc used in hot-dip galvanizing (HDG) coating degrades in nature at the end of its service life and leaves no residue. Additionally, materials used in the process can be recovered through recycling. Contrary to assumptions, HDG coating is more economical than alternatives. This is because galvanized coating, after initial application, requires no maintenance or repair for many years depending on environmental conditions. However, this is not possible with barrier coatings, where maintenance and repair needs arise over average 5-10 year periods. This increases the cost of service life. The estimated service life of galvanized coating is determined within standards based on coating thickness and environmental conditions. For example, a steel product with 50 micron coating thickness can serve approximately 60 years without maintenance in an urban environment. This provides significant advantage in products that are difficult to access and of vital importance, such as power transmission lines and highway barriers.

Sector Status:

Turkey currently has 58 hot-dip galvanizing facilities. The combined technical capacity of existing facilities is 2.6 million tons annually, but unfortunately this capacity cannot be fully utilized. There is approximately 30% idle capacity. We believe this will be resolved through increased awareness of galvanized coating use and wider adoption of galvanized coatings. As an association, we are conducting various activities on this matter. We organize specialized training for institutions and organizations tailored to their needs. We prepare publications to inform both galvanizers and users. Our developing sector continues to show growth trends as galvanized coating awareness increases. Our sector, which produced 1.2 million tons of galvanized steel in 2016, contributed USD 3.6 billion to our national economy. Although the first quarter of 2017 was sluggish, intense activity beginning in May compensated for that period. Solar energy system panels and infrastructure constructions, wind power plants, power transmission line poles, external facade scaffolding, etc. accelerated our sector. Particularly in the second half of 2017, the solar energy sector's entry into an intense period under year-end incentives had positive effects on the galvanized coating sector. We estimate that this year, with approximately 20% growth compared to the previous year, our annual production will reach 1.5 million tons. With continuing and new transport projects (Çanakkale Bridge, highways, overpasses, high-speed rail, metro and light rail systems, etc.), our sector will continue to grow in 2018. Additionally, as new business areas currently on our agenda are implemented, hot-dip galvanizing will move closer to its deserved market share.

Sector Status in the World and Europe, Turkey's HDG Sector Position

Our sector's history goes back 150 years. Production in Turkey has been occurring for approximately 60 years. Although we have been somewhat behind, today Turkey's Hot-Dip Galvanizing Sector is at a level that can compete with facilities in developed countries in both technology and work quality. In the world and especially in Europe, HDG, being a corrosion protection method known and applied for longer than in Turkey, has most existing structural steel projects used in galvanized form. Consequently, these markets now maintain current levels and new projects are gaining considerable momentum. In Turkey, many related sectors are newly discovering the importance and advantages of galvanized coatings. Our association's promotional activities and specialized training organized for institutions and organizations play an important role in this. We prepare various publications appropriate to the needs and agenda of steel manufacturers, designers, users and galvanizers to inform them. Most importantly, the Hot-Dip Galvanizing Handbook. This publication is the most comprehensive book written to date about our sector. Its original language is German. After English, it was translated into Turkish with GALDER's contributions and presented to the sector. Thus we provided a unique resource. In addition, we have free publications prepared especially to inform users. Interested parties can reach our association to request these publications. We also provide technical support on matters related to our sector. All of these both develop our sector and have positive effects on galvanized coating use.

HDG Adds Value to Steel:

Protecting steel against corrosion adds distinct value to it. This is important not only in providing advantages for our country in exports but also in the domestic market. Generally, contractors or project owners turn to alternatives cheaper than galvanizing in initial application thinking economically, and unfortunately cheap is not always economical. When you look at the picture broadly and evaluate it with maintenance and repair costs, environmental impact, etc., a completely different result emerges. According to 2014 data for Turkey, the total corrosion loss cost was USD 49.6 billion. It is possible to reduce this loss by using hot-dip galvanized coatings. Steel projects receiving certain support or incentives for project owners or contractors would be encouraging. This is also important in terms of corrosion control.

Sector Problems and Expectations

Our dependence on foreign sources for HDG raw material (zinc) is a factor that reduces the contribution of the sector to our economy. General galvanizers represented by our association use approximately 150,000 tons of zinc annually. Continuous sheet and pipe galvanizers use a similar amount. That is, the annual zinc consumption in Turkey is approximately 300,000 tons. Its monetary equivalent is approximately USD 1 billion. This money is transferred abroad every year. It is possible to produce zinc domestically. If this is achieved, not only will our money stay within the country, but all galvanizers, especially in competition with foreign players, will gain a competitive advantage.   S. Burcu Akman General Secretary General Galvanizers Association GALDER