ÇİB: Turkish steel sector focuses on green transformation to counter cost pressures

Tuesday, 21 April 2026 14:24:47 (GMT+3)   |   Istanbul

According to media reports, the Turkish Steel Exporters’ Association (ÇİB), which participated in the Wire & Tube 2026 held in Düsseldorf between April 13-17 with 197 companies, stated that Turkish firms - standing out with geographical proximity, fast delivery, and high quality - will focus on green transformation and renewable energy investments to mitigate rising protectionism and war-driven cost pressures in global trade.

Evaluating the impact of global developments on the sector, Selçuk Yılmaz, ÇİB supervisory board member, noted that freight costs have increased by up to 40 percent due to the Iran-US conflict, emphasizing that a significant portion of exports is carried out via maritime transport. On the production side, he stated that rising electricity and natural gas prices have pushed costs upward, adding that energy prices for industrial use were increased as of April 4 after a long period, directly impacting production costs.

EU quotas and tariffs create pressure

Underlining that the EU market is of critical importance for Turkish steel sector, but quotas and additional tariffs have made exports more difficult, Mr. Yılmaz recalled that quota volumes will shrink as of July 1 and that a 50 percent duty will apply in case of quota overuse, adding that Turkey has not been able to fully benefit from the Customs Union agreement and that efforts are ongoing to limit the extent of quota reductions.

He emphasized that Turkey’s geographical proximity to Europe provides a major advantage, noting that Turkish steel can reach European ports in approximately 48 hours, while delivery times from competing countries such as India, Vietnam, and Taiwan can extend to 25-30 days. He added that developments in the Strait of Hormuz highlight the risks of long-distance supply chains, reinforcing Turkey’s position as a “safe haven” supplier for the EU.

Green transformation and energy investments come to the forefront

Stating that the sector is seeking solutions to cost pressures, Mr. Yılmaz said green transformation and renewable energy investments playing a key role. In line with Turkey’s 2050 net-zero carbon target, steel producers are increasingly turning to solar energy. Currently, around 15-20 percent of the sector’s energy needs are met through renewable sources, and this share is expected to rise further.

Strong position in production and exports

Noting that Turkey ranks seventh globally and first in Europe in steel production, he added that the country completed 2025 with 38 million mt of steel production. With exports of around 19 million mt, the sector has maintained a strong position in global markets. He stated that there is currently no deviation expected from the 2026 targets of 20 million mt in exports and $17 billion in value.

Prices remain volatile

Commenting on fluctuations in steel prices, Mr. Yılmaz said that movements in global commodity markets directly affect unit prices. He recalled that steel prices, which reached $1,400 in 2021, have declined to the $600-700 range, warning that evaluations based solely on price may be misleading. He added that the sector continues to pursue a growth strategy focused on tonnage and value-added production.


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