Fuat Tosyalı, chairman of Tosyalı Holding, has warned that Turkey’s steel industry is at risk of irreparable damage due to the surge of dumped steel imports from China, according to a report in the Turkish daily newspaper Dünya.
“Under these conditions, not only is it impossible to make improving investments, but it has also become impossible to protect the existing ones,” Mr. Tosyalı said, stressing that, without urgent protective measures, Turkey’s steel sector will collapse.
Steel as a strategic sector
Tosyalı highlighted the strategic role of steel in national economies, calling it a “barometer” of economic strength. He emphasized that a strong domestic steel industry reduces import dependency, while it ensures continuity of strategic production.
Other countries such as the US impose high tariffs and the EU strict quotas to shield their industries. He warned that China, blocked by US and EU restrictions, is redirecting exports to Turkey, intensifying pressure on local producers.
Trade deficit and lack of incentives
Turkey’s trade deficit with China exceeded $50 billion in the past six to seven months:
- Steel imports make up a significant portion of this gap.
- Turkish steelmakers operate without incentives or subsidies, restricted by the European Coal and Steel Community (ECSC) agreement.
“Turkish steel producers have come this far solely on their own resources, but now they cannot even operate at full capacity,” Tosyalı underlined.
“Once this industry collapses, it cannot rise again”
Tosyalı pointed to Tosyalı Holding’s over $4 billion investment in Iskenderun, stressing the unsustainability of competing against dumped products.
He warned that even minor steel price fluctuations result in millions of dollars in losses or gains. If producers consistently sell at a loss, they erode capital. “Once this industry collapses, it cannot rise again,” Tosyalı added.
Turkey possesses strong industrial infrastructure
Tosyalı also drew attention to Turkey’s industrial strength and market dynamics while addressing China’s strategic maneuvers. He stated that, when the US raised tariffs on the whole world, China was left without markets. Now, despite everything, Turkey is still a very large market since, on the one hand it imports, while on the other it processes and sells.
He stressed that Turkey possesses a strong industrial infrastructure and a dynamic market, while noting that Africa’s consumption levels remain at only a quarter of Turkey’s. For this reason, Tosyalı underlined that Turkey, thanks to its industrial clustering, serves as a critical supply hub in steel.
Pointing out that China has been able to enter these ready markets with ease, Tosyalı warned that, if Chinese subsidies were withdrawn and the industry collapsed, it would not be able to recover. “That is why we must ensure sustainability,” he concluded.