The Turkish Steel Producers' Association (TCUD) has shared its assessment of the Turkish steel industry's performance in the January-September period of 2026.
According to the association, although the Turkish steel industry recorded a positive performance with a 6.1 percent increase in production during a period when global steel production declined by 0.7 percent, the slowdown in production growth since July and the industry's capacity utilization rate of 64 percent, which is 12 percentage points below the global average, are noteworthy. During the same period, steel consumption increased by 2.2 percent to 29.5 million mt. However, the growth rate of consumption slowed significantly, particularly due to contractions recorded in the third quarter. This was highlighted as a negative development for domestic demand conditions.
Steel exports to EU decline by 23 percent, while specialty flat steel exports rise by 116.4 percent
Regarding steel exports, shipments of specialty flat steel products, consisting of stainless and alloy flat steel products, increased by 116.4 percent to 448,000 mt in the first nine months of the year. TCUD evaluated this increase in exports of value-added products as a positive development in terms of improving the product mix of exports and shifting the industry toward higher value-added production.
Steel product exports to the EU declined by 23 percent to 3.7 million mt due to the impact of the Carbon Border Adjustment Mechanism and quota measures. Although exports to alternative markets such as the US, the UK and Latin America increased, the association stated that these increases are unlikely to offset the losses in the EU market in the short term.
Association highlights impact of low-priced imports and rising costs on investments
Meanwhile, due to state-subsidized and low-priced sales, particularly from Far Eastern countries, prices of Turkish finished steel products remain under pressure. As a result:
- Rebar prices in Turkey are 42 percent lower than in the US and 16 percent lower than in the EU,
- Hot rolled flat steel prices in Turkey are 56 percent lower than in the US and 29 percent lower than in the EU.
The resulting pressure on profit margins, together with deductions under the Environmental Contribution Fee and the Rebar Monitoring System, is creating serious difficulties in financing investments, particularly those related to green and digital transformation.
