We spoke with Hakan Doğan, company representative at 3K Denizcilik Demir Çelik, about the company's operations, current market conditions, and expectations for the Turkish steel industry. According to Mr. Doğan, the key to success is not "growing volumes," but "creating value and remaining flexible."
Could you introduce your company?
Since our establishment, 3K Denizcilik Demir Çelik A.Ş. has been operating in the steel industry with a commitment to trust, quality, and sustainability. We have built a business model that adapts to the dynamic nature of the industry while maintaining an unconditional customer satisfaction approach in both procurement processes and customer relations.
In our core business of steel, we meet the raw material and semi-finished product requirements of the manufacturing industry through our extensive inventory of steel pipes and our strong logistics network. By combining our strengths in shipping and logistics with our experience in the steel sector, we provide our stakeholders not only with products but also with reliable end-to-end solutions. Today, we continue to monitor developments in both the domestic and global markets closely and take visionary steps that help shape the future of the industry.
Could you tell us about your product portfolio?
With our inventories of cold rolled (CR) and hot rolled (HR) pipes manufactured in Turkey, we are able to respond very quickly to market demand. Our broad product portfolio includes both prime and secondary quality products, enabling us to offer flexible and comprehensive solutions that meet different budgets and project requirements.
Which industries do you serve? How do you assess current demand in these sectors?
The CR and HR pipes in our portfolio are essential inputs for many of the key industries supporting manufacturing. We serve virtually every sector that relies on steel, particularly construction, structural steel, automotive supply, machinery manufacturing, furniture, household appliances, and general manufacturing. Offering both prime and secondary quality products enables us to become a direct solution partner for a broad customer base with varying budget levels and technical specifications.
How would you evaluate the first half of 2026 for the pipe, profile, and flat steel markets?
The first half of 2026 was a particularly challenging period for the pipe, profile, and flat steel markets, with a clear slowdown in business activity. The global economic slowdown, rising logistics and energy costs, and difficulties in accessing financing in the domestic market significantly suppressed demand, particularly from the manufacturing and construction sectors. Throughout the first six months of the year, the industry experienced extremely low profit margins, while price volatility made cash flow management increasingly difficult.
How do you assess recent developments regarding material availability on the supply side?
One of the main reasons behind the severe pressure on profit margins has undoubtedly been the industry's high production capacity. When supply exceeds demand, the resulting oversupply puts direct downward pressure on prices. Producers are forced to compete aggressively on price in order to finance their high capacities and reduce inventories, which drives profitability across the entire supply chain to minimum levels.
How are imported products shaping competition in the domestic market?
Imported products have intensified competition in an already oversupplied domestic market. In particular, low-cost raw materials and semi-finished products imported from Asia create price pressure at levels that domestic producers cannot match due to their cost structures. This situation erodes profit margins across the domestic market while leading to unfair price competition.
How is the current economic environment affecting your business?
The current economic environment, characterized by high financing costs and shrinking profit margins, directly affects us as it does the entire industry. In a capital-intensive sector such as steel, managing cash flow and inventory costs has become more critical than ever. Cautious demand and continued downward pressure on prices have created a very challenging business environment.
Do you have any investment, capacity expansion, or new product plans for the coming period?
Given today's market conditions, where high production capacity and abundant material availability continue to put pressure on the industry, we believe the right investments are those focused on efficiency, logistics capabilities, and product flexibility. Rather than pursuing capacity expansion for its own sake, we are concentrating on strategic initiatives that will strengthen our position in the existing market.
Our primary objective in the near term is to further optimize our strong inventories of Turkish-produced CR and HR pipes and profiles while investing in digital procurement processes to provide customers with significantly shorter delivery times.
What are your expectations for the future of the Turkish steel industry?
The Turkish steel industry is one of the world's leading players thanks to its production capacity and flexibility. However, I see its future through a very clear distinction: companies with a global vision and those that remain confined to the domestic market.
I believe our major steel producers will continue to succeed thanks to their experience, flexibility, and long-term strategic planning. Their overseas investments, acquisitions, and international partnerships will further strengthen the global position and brand value of Turkish steel.
On the other hand, I believe companies that focus solely on the domestic market without upgrading their technology, product portfolios, or financial management will face increasingly difficult conditions in the years ahead.
Is there anything else you would like to add?
The steel industry is, by its nature, one that constantly faces both crises and opportunities, making it one of the most dynamic sectors of the economy. The difficult market conditions of 2026 have reinforced our belief that success is achieved not by expanding volumes but by creating value and remaining flexible.
At 3K Denizcilik Demir Çelik A.Ş., we continue to stand by Turkish manufacturers under all market conditions through our inventories of Turkish-produced CR and HR pipes and our ability to offer both prime and secondary quality products suitable for every budget and project. Supported by our strong logistics capabilities and proactive inventory management, we will remain a reliable harbor for our business partners, regardless of which way the market winds blow. We firmly believe that, together with producers and stakeholders who continue to innovate and embrace a global vision, we can take the Turkish steel industry to even greater heights. Thank you for this enjoyable interview and for your insightful questions that truly reflect the pulse of the industry.
