We spoke with Doğukan Baylan Board member of Işık Çelik about the current situation in the steel sector.
Can you tell us about your company's activities?
Işık Çelik is one of the well-established companies in the Turkish steel sector, operating in Karabük since 1965. Since its establishment, it has focused on growth based on trust, quality, and sustainability in the sector. Today, with an annual production capacity of 450,000 tons, it operates with a wide product portfolio for both domestic and international markets.
Our new production facility stands out not only for its production capacity but also for its technological infrastructure, digital production systems, and environmentally friendly energy usage. In particular, we generate a total of 6,803 kWe of electricity from renewable sources with the 3,991 kWe solar power plant installed on the roof of our facility and the 2,812 kWe power plant at our existing facility. In this regard, we are one of the leading companies in the industry, prioritizing environmentally conscious production.
Our product range extends from hot and cold rolled steel products to special profiles, processed bars, and fasteners. This diversity allows us to cater to many sectors: construction, automotive, machinery, agricultural equipment, the furniture industry, and others.
How would you describe the trends in demand and prices?
As of 2025, the steel sector is experiencing fluctuating but controlled trends. Although the global economic pressures experienced in the first quarter caused a slowdown in investments, especially in developing countries, signs of recovery were being seen as of the second quarter. With construction, automotive, and industrial investments picking up speed again, demand for steel products has also entered a new growth trend.
Prices are fluctuating depending on global production costs, energy prices, and access to raw materials. However, as Işık Çelik, we are able to offer our customers a competitive and sustainable pricing policy because we have optimized our production costs. We respond to our customers' needs with flexible pricing and fast delivery, both in the domestic market and in exports.
What are your domestic and international sources for your billet purchases?
We strive for balance in our raw material procurement strategy. The billets we source from strong domestic producers give us logistical and fast delivery advantages. At the same time, we also import billets from international markets, particularly the Black Sea region, central Europe, and the Gulf countries.
This distribution is shaped by the supply-demand balance in global markets. We have strong relationships with local sources, as well as long-term agreements with foreign suppliers. This hybrid model ensures both price stability and production continuity.
How do you view the situation in the export markets? What is the competition like, particularly with North Africa?
Exports are one of our company's strategic growth areas. We currently export to over 100 countries across five continents, primarily in Europe, the Middle East, North Africa, and Latin America. Our global competitiveness is particularly high in value-added products such as steel profiles and processed bars.
Competition in the North African market is quite intense. Both European countries and products originating from the Far East are present in this market. However, our advantage is that we can offer high quality standards, fast delivery times, and technical support. We are also playing a more active role in local markets by continuously expanding our distributor network in these regions. Sustainable relationships based on customer satisfaction differentiate us in North Africa.
Given the recent developments in the region, how do you view the sales opportunities in Middle Eastern countries, particularly Syria?
The Middle East holds great opportunities for the steel sector with its reconstruction process. Investments in infrastructure, housing, and industrial facilities are expected to pick up speed again. Although political stability has not yet been fully achieved in Syria, there are promising signs for the future.
Projects are continuing unabated in countries such as Iraq, Jordan, Saudi Arabia, and Qatar. We are able to deliver on time and in full to these regions by leveraging our logistical advantages. The Middle East market will account for an even larger share of our company's export volume in the next few years.
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 US market has always been an attractive target, but the high tariffs and antidumping measures imposed are decisive factors for the Turkish steel sector. These measures create difficulties for exporters in the short term. In particular, the chances of competing in standard products are significantly reduced.
However, opportunities still exist for high value-added and specialized engineering products. As Işık Çelik, we strive to maintain our position in the market with these types of products. At the same time, we are diversifying risks by turning to alternative markets and making our export portfolio more balanced.
What changes are rising protectionism causing in global markets?
Protectionist policies have led to the emergence of more selective and controlled processes in trade. Factors such as customs duties, quota applications, and quality and certification requirements are making it more complex for companies to enter foreign markets. However, this also means an advantage for companies that produce in a more organized and high-quality manner.
As Işık Çelik, we are able to overcome these obstacles more easily because we have brought our production processes into line with international standards and developed sustainable production systems. Thanks to our environmentally friendly production models and certified quality systems, we comply with the technical requirements of many countries.
Turkey did not have its own quota for angle iron and profiles in the EU import quota, but as of August 1 a country-specific quota was introduced, and the tonnage Turkey can export has increased. What do you think the effects of this will be?
This development is a very important turning point for the sector. The quota uncertainties we have faced in exports to the EU for a long time have made it difficult for companies to plan. The country-specific quota application that came into effect on August 1 will pave the way for an increase in the tonnage that Turkey can export and a more predictable export process.
Our competitive strength is already quite high, especially in profile and angle products. With this quota increase, we will be able to enter into longer-term contracts, expand our customer portfolio, and further strengthen our position in the European market.
How is the current economic situation affecting construction activities and your business?
Economic fluctuations naturally create an uneven picture in the construction sector. High interest rates and difficulties in accessing financing, in particular, can cause some projects to be postponed. However, thanks to public investments and urban transformation projects, the sector has not experienced a complete standstill.
As Işık Çelik, we are relatively less affected by these fluctuations because we supply products not only to construction but also to different sectors such as industry, automotive, machinery, and agricultural equipment. In addition, thanks to our new product development efforts and export-oriented strategies, we are able to balance domestic market fluctuations with foreign markets.
How is 2025 going and what are your expectations for the rest of the year?
2025 has been a year of growth, renewal and transformation for us. The commissioning of our new production facility has tripled our production capacity. At the same time, our solar energy investments, which reduce our energy costs, have enabled us to transition to an environmentally conscious and economical production model.
In the second half of the year, we will pursue a more aggressive export strategy, particularly in the European and Middle Eastern markets. Our goal is to increase our total export volume by 20 percent by the end of the year. At the same time, we will maximize our production efficiency through investments in digitalization and automation.