We spoke with Özkan Akşit, Purchasing, Pipe, Profile and Solar Projects sales director at Noksel Pipe, about the current outlook for the pipe sector, opportunities in export markets, and the new growth potential that the energy transition is expected to create for the industry.
How has 2026 been for the pipe sector? What are your expectations for the rest of the year?
We are going through a challenging yet opportunity-filled period. Turkey is the world's seventh-largest steel producer, while ranking fourth globally and first in Europe in the pipe industry. Managed properly, this scale represents a significant advantage. The global wave of protectionism and the EU's new quota regime will inevitably result in some loss of export volumes. However, for Noksel, 2026 has been progressing in a balanced manner compared to 2025. Our export ratio stands at 35-40 percent, while our capacity utilization has remained at a healthy 70-75 percent.
For us, the key issue is not capacity but ensuring that we have the right product in the right market. That is why we are focusing on supply chain and market diversification, while developing a strategy that turns developments such as Carbon Border Adjustment Mechanism (CBAM) and the Melt and Pour requirement into opportunities. Although 2027 may be difficult, we see it as a chance to strengthen our market position.
What is your assessment of domestic demand and competition?
Competition in the domestic market is intense. Tight credit conditions and high production capacity are creating challenges for some market players. At the same time, this environment is driving a natural differentiation within the industry, with companies that excel in cash management and operational discipline emerging stronger.
As the old saying goes, profitability is like a plastic vase, while cash is like a glass vase - you can recover the first one if it breaks, but not the second. With this mindset, we place great importance on cash management and customer risk management.
Although domestic production capacity currently exceeds consumption, intensifying competition in the short term, this process is also helping the industry mature through greater efficiency and consolidation. We believe a more disciplined investment approach will ultimately strengthen the sector.
How do you evaluate recent price trends? What impact are raw material costs, particularly hot rolled coil, having on pipe producers?
OECD data indicate that the global oversupply of steel continues, creating price volatility. However, this environment also presents opportunities to gain a competitive advantage through proper timing and strong supplier relationships. Rather than focusing on short-term gains from price fluctuations, we prefer to manage them through long-term customer relationships and a stable pricing strategy.
Although Turkey's Manufacturing PMI points to slower industrial activity, we see this as an opportunity to become more selective and efficient, transforming short-term pressure into long-term discipline.
How is demand developing in export markets? Which regions offer the greatest growth potential, and where do you see the biggest challenges?
Our key export markets are the European Union, the UK, North Africa, and the Middle East. We expect export volumes to the EU and the UK to decline due to quota restrictions, but our priority is to maximize the efficiency of our quota utilization through the right product mix.
North Africa and the Middle East represent our main growth story. Active infrastructure investments and a more flexible trading environment provide opportunities where we believe we can strengthen our market position.
Being present where demand exists will be the right strategy going forward. We also believe that, once regional stability improves, reconstruction efforts will generate significant steel demand in the medium term.
How are current economic conditions affecting your business?
High interest rates and the strong Turkish lira are creating challenges in terms of costs and competitiveness. We believe a more predictable macroeconomic environment that encourages productive investment is needed.
Nevertheless, we remain disciplined by placing strong emphasis on collections, risk management, and maintaining our cost advantages. Challenging periods, when managed correctly, make companies more resilient, and that is exactly the approach we are taking.
What impact do you expect from higher US tariffs and the EU's new quota regime introduced in July?
The US market has always been a relatively limited market for us, where we have taken a cautious approach. The new EU quotas will also reduce export volumes. However, our long-standing integration with Europe, our logistical advantages, and our low-carbon production capabilities provide us with important competitive strengths.
To reinforce these advantages, we believe Turkey should implement its own Emissions Trading System (ETS) aligned with the European system by 2027. This would make our industry both more competitive and more sustainable.
How is the CBAM affecting pipe exports? How well prepared is the Turkish steel industry?
If approached correctly, CBAM represents an opportunity rather than a threat. Working with suppliers that provide full traceability - from melt and slab to origin - not only enables more accurate pricing but also strengthens our credibility in Europe.
Establishing Turkey's own ETS would accelerate this transition and help preserve the industry's competitiveness. We are well prepared for this process.
What impact are geopolitical developments, particularly conflicts in the Middle East, having on the sector?
Regional conflicts are certainly affecting both costs and demand. However, we have built our export business not only through competitive pricing but also through years of qualification work and the trust we have established with our customers.
Business continues regardless of market conditions. At Noksel, we maintain a broad product portfolio ranging from energy transmission pipelines to solar energy structures, keeping all of our marketing and project channels active wherever demand exists. Despite current challenges, we continue expanding both our product range and our investments.
What opportunities do you see in energy transmission, natural gas, hydrogen, and renewable energy projects over the medium and long term?
This is where we see the industry's real growth story. Turkey occupies a strategic position in regional energy transmission, and TPAO's recent initiatives clearly demonstrate this potential.
On the hydrogen side, we are already actively involved through Noksel España. Over the past four years, we have supplied more than 200 km of hydrogen pipelines for Italy's Snam Rete Gas. Our next target is the SoutH2 Corridor, which will connect North Africa with Europe. Supported by our experience and references, we aim to become one of the key suppliers for this project as well.
Is there anything else you would like to add?
The Turkish steel industry has a major opportunity ahead. We are not yet sufficiently strong in high value-added segments such as seamless pipes, high-grade steel plate, hydrogen applications, and solar-compatible coated products, but this is precisely where future growth will come from.
At Noksel, this is the vision that guides us. We continue expanding our product portfolio while investing in secondary processing capabilities to increase added value. With the right strategic planning, we believe Turkey can establish a much stronger position in these high-value segments.
