At the first Steel Networking Summit 2026 conference, organized by the Turkish Steel Exporters' Association (ÇİB) at Swissôtel the Bosphorus in Istanbul on October 26-27, industry representatives discussed global steel market conditions and shared their expectations for the sector's future.
In his opening speech, Ömer Bolat, trade minister of Turkey, emphasized Turkey's position among the world's leading steel producers and trading centers, supported by its extensive production capacity and international trade network. He stated that additional US tariffs on steel and the EU's import quotas and protection measures were making market access more difficult for Turkish producers and exporters. Highlighting Turkey's role as a reliable supplier to European industry, minister warned that excluding Turkish steel producers from European supply chains would also undermine the competitiveness of EU manufacturers. He added that trade restrictions limiting the circulation of scrap-based, low-carbon steel could hinder green transition objectives.
Uğur Dalbeler, chairman of ÇİB and president of the World Steel Association, stated that capacity expansions unsupported by demand were increasing export pressure and encouraging protectionism, while broad trade restrictions were also harming competitive producers. He called for decarbonization policies to consider differences in producers' access to energy, financing and technology, warning against carbon regulations becoming additional trade barriers. Meanwhile, Fuat Tosyalı, chairman of Tosyalı Holding and the Turkish Steel Producers' Association (TÇÜD), emphasized Turkey's Customs Union relationship with the EU and the integration of their industrial value chains. He argued that Türkiye should not be treated in the same way as other third countries under EU steel policies. Mr. Tosyalı identified protection against unfair competition, predictable trading conditions and financing mechanisms for low-carbon steel production as key priorities.
Global steel capacity utilization remains at 75-76%
During the first session, titled “World Economic Outlook and the Steel Industry”, Henrik Adam, director general of the World Steel Association and former president of EUROFER, stated that global steel capacity utilization currently stands at approximately 75-76 percent. He noted that around 140 million mt of additional capacity is expected to come online in the coming years, while demand growth is unlikely to keep pace. Mr. Adam also highlighted increasing trade barriers and the growing localization of steel production.
Edwin Basson, former director general of the World Steel Association, stated that global steel demand is expected to remain largely stable at approximately 1.7 billion mt in 2026 before increasing in 2027. He identified geopolitical uncertainty and financial pressures as major risks to the economic outlook, while suggesting that growing steel consumption in Southeast Asia over the next decade could offset declining demand in China.
Market fragmentation and energy costs remain major challenges
During the panel moderated by Hakan Güldağ, chairman of the board of media at Nasıl Bir Ekonomi, Mr. Dalbeler, Mr. Adam and Mr. Basson focused on excess steelmaking capacity, market fragmentation, rising trade barriers and geopolitical uncertainty as major challenges for the global steel industry. The need for fair competition and rules-based trade was highlighted, alongside concerns that protectionism could encourage further capacity expansion. Decarbonization was identified as a long-term challenge requiring substantial investment and technological development, while access to competitively priced energy was seen as increasingly important for production costs and the location of new steel plants. The discussion also addressed uncertainty over emissions verification under the EU's Carbon Border Adjustment Mechanism and calls for Turkey to adopt steel import measures similar to those of the EU to counter unfair competition.
