Mehmet Zeren, secretary general of the Turkish Steel Pipe Manufacturers Association (ÇEBİD), commented on the contraction in domestic demand for steel pipes, mounting quota and tariff pressures on exports, and the industry's challenges in accessing raw materials at competitive prices.
The Turkish steel pipe industry did not get off to a strong start in 2026. Weak domestic demand, particularly from the construction, automotive and household appliance sectors, together with the slowdown in infrastructure investments, weighed on production and domestic sales during the first half of the year.
On the export side, shipments declined by 1.5 percent year on year in the first six months of 2026, totaling 973,000 mt with a value of $831 million.
We expect the contraction in domestic demand to continue during the second half of 2026. Significant challenges are also anticipated in export markets. In particular, the EU's new quota regime, introduced in the second half of 2026, has reduced our sector's total quota allocation by around 40 percent. If we are able to make sufficient use of the newly introduced FTA Quota-CSQ mechanism, this reduction could be limited to around 30 percent. Even at that level, the loss would correspond to approximately 15 percent of our total exports. Unless new markets are found to offset this decline, our exports in 2026 could decrease significantly.
In addition, the US decision to raise tariffs on steel products to 50 percent has resulted in a substantial decline in exports to that market.
Furthermore, uncertainty in the Middle East due to the US-Iran war, coupled with rising energy prices and higher logistics costs, has also had a negative impact on exports.
The most significant challenge facing our industry is the inability to procure hot rolled coil (HRC), our main production input, at world market prices. Steel pipe producers source most of their raw materials domestically. However, using domestically purchased raw materials makes it difficult to compete in export markets. In addition to the 15 percent customs duty on HRC imports, antidumping duties imposed on imports from the EU, South Korea, China, India, Japan and Russia have pushed domestic raw material prices higher. As a result, it has become increasingly difficult to compete in export markets against countries such as China and India, where producers have access to lower-cost raw materials.
To remain competitive, our members have relied on importing raw materials under the Inward Processing Regime (IPR) at world market prices for export-oriented production. However, the recent amendment to the IPR, introducing a requirement that 25 percent of raw materials must be sourced domestically, has further weakened our competitiveness in export markets.
On the other hand, we observe that steel pipes are not being used sufficiently in irrigation and drinking water transmission projects tendered by public institutions and municipalities. At the same time, water resources are steadily declining due to drought, making efficient water management more critical than ever. Since steel pipes are joined by welding rather than sleeves and gaskets, they are not exposed to leakage or burst risks associated with alternative pipe systems. As a result, steel pipelines minimize water losses and leakage, making them the most suitable solution for efficient water use. It is therefore of great importance for public institutions and municipalities to consider efficient water management when selecting materials for drinking water and irrigation transmission systems, particularly in an era of increasing drought.
