Speaking at the ordinary general assembly of the Turkish Steel Producers Association (TCUD) held on May 7 in Istanbul, chairman Fuat Tosyalı stated that, despite the challenges the Turkish steel industry has faced in the past three years, the industry achieved improvement in its capacity and technological level. Noting that the country’s steel production capacity reached 60 million mt in 2024, up from 54 million mt in 2021, he emphasized that this capacity increase has not been sufficiently reflected in domestic production due to sluggish global demand and the continued rapid pace of the country’s steel imports. Despite this, Turkey’s steel production in 2024 increased by 9.4 percent, he said. Pointing out that Turkey’s imports account for 45 percent of its steel consumption, Mr. Tosyalı stated that it is important for Turkey to implement policy measures, such as those in the US and the EU that redirect local demand towards domestic production, that boost Turkey’s competitiveness, and reduce dependency on imports.
Regarding the EU, where Turkey’s steel exports increased by 76 percent in 2024, and the EU’s limitation of the quota volumes allocated to Turkey for some product groups, Mr. Tosyalı predicted that the reduced quota volumes will lead to a slowdown in the country’s exports to the region. Moreover, he pointed out that the new steel tariffs imposed by the US on imports from the countries previously exempted from Section 232 duties would bring both opportunities and negative effects for Turkey.
Stating that trade wars and the EU’s restrictive approach to steel and scrap trade pose risks to the long-term sustainability of Turkish steel industry, Tosyalı highlighted that more efficient use of capacity and production capabilities, increased R&D investments, and the production of high-value-added steel should be the Turkish steel industry’s top priorities to build a strong economy in the new world order. The TCUD chairman emphasized the importance of addressing the expectations of strategic industries like steel during the negotiation of free trade agreements, continuing the positive trends in alternative markets like Africa, diversifying markets, and maintaining competitiveness in green steel production by using inputs such as DRI and HBI, which will accelerate the strengthening of the position of the Turkish steel industry.
In addition, he said, the TCUD expects that, with the disinflation in the second half of the year, interest rates will gradually decline, creating a more favorable environment for investments and consumption.
