At the 19th SteelOrbis Steel Conference “New Horizons in Steel Markets” held on Tuesday, December 3, in Istanbul, Paolo Sangoi, president of Assofermet Acciai, the association representing Italian distributors of scrap, raw materials and steel products, talked about the position of Turkey in the EU steel sphere and the repercussions of decarbonization efforts.
According to Mr. Sangoi, the protectionist measures implemented by the European Commission have negatively affected the market share of Turkey in the European steel sector, but Turkey has remained one of the largest trade partners of the EU with a crucial role in terms of tonnage, quality and geopolitics.
The Assofermet Acciai president stated that, while China’s aggressive exports and the geopolitical turmoil in the Middle East have shrouded the future in uncertainty, the renewable energy sector has found strong support thanks to decarbonization efforts. However, he went on to note that, unless it is softened, CBMA adjustments will risk the extinction of the sectors which historically have consumed the most steel, such as automotive, construction, machinery and household appliances. In 2024, the automotive industry showed a 40 percent drop in steel consumption, while EU GDP is expected to grow by 0.9 percent in 2024 and 1.5 percent in 2025.
“The EU will immediately use financial retaliation against the US if Trump actually goes through with his tariffs,” Mr. Sangoi said, claiming that this situation will hurt the availability of commodities. He also stated that steelmakers will halt production as a result of lower margins and this will keep steel prices steady throughout the next two quarters. On the other hand, he said, aggressive measures like safeguard quotas weaken the steel sector and the only subsidy the sector needs is support for downstream manufacturing, not just the steel industry.