Fuat Tosyalı, president of the Turkey-based Mediterranean Ferrous and Non-Ferrous Metals Exporters Association, has outlined the key challenges facing Turkey’s steel industry while emphasizing the need to remain focused on long-term opportunities, according to a report by Turkish newspaper Ekonomim.
Mr. Tosyalı noted that, while concerns about weak business conditions have persisted for decades, the sector has continued to grow alongside its stakeholders.
According to Tosyalı, the ADMİB region, particularly Iskenderun and Osmaniye, accounts for nearly half of Turkey’s total steel production, with around 20 million mt of capacity out of the country’s total 37 million mt. The association oversees exports exceeding $3 billion across a wide geographical area.
Rising imports and lower utilization rates
Tosyalı reiterated concerns over increasing imports, stating that Turkey imported an annual volume of around 18 million mt of steel, mainly from China and other Far East countries, at a cost of $9 billion.
At the same time, domestic capacity utilization has declined to 62 percent, reflecting ongoing market pressures.
He added that growing global protectionism and a sharp increase in antidumping investigations highlight the need for stronger trade measures, including potential quota systems similar to those in Europe.
Cost pressures intensify across the sector
Energy costs remain a major factor, accounting for approximately 25 percent of total production costs. Recent increases in electricity and natural gas prices, ranging from 5.8 percent to 25 percent depending on user groups, have further added to cost pressures.
Freight rates have also surged, with shipping costs in some cases doubling or tripling due to ongoing geopolitical tensions.
Efficiency and investment seen as key to competitiveness
Tosyalı emphasized that relying on exchange rate movements is not a sustainable competitiveness strategy.
Instead, he highlighted productivity gains as the key driver, pointing to improvements achieved through automation and artificial intelligence investments in operations such as those in Algeria.
Opportunities remain despite market pressures
Despite current challenges, Tosyalı stressed the importance of maintaining a forward-looking strategy. He noted that, while some sectors may weaken, new opportunities continue to emerge, particularly during challenging periods.
ADMİB vice president Adnan Ersoy Ulubaş added that geopolitical developments, including tensions involving Iran, may shift trade and investment flows toward Turkey, especially in Gulf markets such as Dubai and Bahrain.
Tosyalı concluded that the steel industry remains strategically important, despite its cyclical and challenging nature. He emphasized that long-term competitiveness will depend on efficiency, investment and sound decision-making, rather than short-term reactions to market fluctuations.
