We spoke with Murat Cebecioğlu, export manager of Turkish steel producer İÇDAŞ, about the current situation in the Turkish steel sector, the impact of rising protectionist measures in the global market, and the outlook for the future.
Can you tell us about your company's activities?
İÇDAŞ, which has been producing steel since 1970, ranks among Turkey's top exporters in terms of both production capacity and volume.
In addition to steel production, it operates in the fields of energy, shipbuilding, logistics (sea, land), transportation (air), port operations, construction, insurance, mining, agriculture and livestock.
Its Değirmencik facilities in the Biga district of Çanakkale include two steel mills with a capacity of three and a half million metric tons a year, four rolling mills with a capacity of four million metric tons a year, a three-unit 410 MWm thermal power plant, four 4 MWm hydroelectric power plants, an 11.6 MWm solar power plant, a shipyard, two piers, two docks, and Turkey's largest private sector port facilities with a loading capacity of 30,000 metric tons a day and an unloading capacity of 60,000 metric tons a day, along with auxiliary facilities for these units.
Additionally, on an area of 128,085 square meters, 370 meters long and 70 meters wide, the port facilities are capable of repairing, maintaining and building new ships up to 330,000 DWT; the port has a water draft of 10 meters and is equipped with two 20-ton and one 100-ton service cranes. Mobile cranes are available to provide the necessary crane services.
In addition to the Değirmencik integrated facility, a two-unit thermal power plant with a capacity of 1,215 MWm is operating in Bekirli, Biga, and a wind power plant with a licensed installed capacity of 68 MWm is operating in Biga.
How would you describe the trends in demand and prices?
Unfortunately, the supply and demand balance has been disrupted. Shrinking export markets and increasing competition have put pressure on prices and negatively affected our exports. Countries to which we exported large quantities in previous years have become exporters themselves and are competing with us in shrinking markets. As a result of all this, there has been a certain decline in demand and pressure on prices.
How do you view the situation in the export markets? What is the competition like, particularly with North Africa?
In recent years, countries such as Egypt and Algeria have shipped significant amounts of goods to the United States and European Union countries. The main reason for this is that they have not been affected by protectionist measures as much as we have.
Given the recent developments in the region, how do you view the sales opportunities in Middle Eastern countries, particularly Syria?
The Syrian market will become an important market, especially for producers in the Iskenderun region. With the stabilization of the region, the ongoing exports will gain even more momentum. Our exports to other Middle Eastern and North African countries such as Egypt and Libya will also accelerate.
The US currently imposes a 50 percent tariff on all countries, and antidumping duties have also been revised. Do you expect any changes in sales to the US under these circumstances?
The fact that the United States is imposing a 50 percent tariff on all countries and that antidumping and subsidy cases have been filed against Egypt and Algeria, as well as Vietnam, which have exported significant amounts in recent years, means that these countries are currently out of the market. In this context, although we have the opportunity to export to the United States, the antidumping and subsidy penalties paid as a result of the cases filed against our country's producers in recent years are making exporters think twice about shipping goods.
What changes is increasing protectionism around the world bringing to markets?
Increasing protectionist measures have led to shrinking markets, increased competition, and a disruption of the supply-demand balance. Selling to the United States, Canada, and European Union countries, which hold significant positions in our country's exports, has become nearly impossible due to the tariffs and quotas they impose. China's shift towards export markets has both increased competition and prevented us from exporting to countries such as Singapore and Hong Kong, to which we previously exported significant amounts.
How is the current economic situation affecting construction activities and your business?
High credit costs are causing delays in the new medium-scale private sector projects that are planned. In addition, we believe that the lack of significant public investments is also causing a decline in demand for construction steel.
How is 2025 going and what are your expectations for the rest of the year?
No significant developments are expected in terms of exports for the remainder of 2025. As I mentioned, shrinking markets, increased competition and protectionist measures are creating obstacles to exports.