Uğur Dalbeler, vice-chairman and candidate to be the new chairman of the Turkish Steel Exporters’ Association (ÇİB), as the term of Adnan Aslan, ÇİB chairman, will end at the general assembly to be held in April this year, has shared developments regarding the association’s ongoing activities and upcoming projects in an interview with Turkish newspaper Ekonomi. Mr. Dalbeler stated that negotiations regarding the EU’s new quota regulation, the updating of the Customs Union and related agreements, the establishment of strong legal defense mechanisms against antidumping and safeguard measures gaining ground in eastern Europe, Africa and alternative markets, and solutions aimed at reducing costs are among the key priorities in the roadmap for the ÇİB’s new term.
Most critical issue of the new term - protectionism
Saying that the most critical agenda item of the new term is the shift in global trade dynamics, Mr. Dalbeler noted that rising protectionist measures, particularly in Western markets, are challenging the sector.
Noting that the geography of Turkey’s exports has changed significantly over the past 20 years, and that some regions where Turkey was once strong have now turned into competitive production hubs, Dalbeler stated that exports that were once heavily directed to Southeast Asia and the Far East in the 1990s have been replaced by strong competitors, while North African countries have become more self-sufficient through new investments and have turned toward protectionist practices. Despite this, he emphasized that Turkey maintains important advantages, sustaining a strong supplier position in Western markets thanks to its fast delivery capability and certification compliance.
EU quota alert - Turkey’s exports to EU could shrink by 60 percent
Mr. Dalbeler’s most striking warning concerned the EU’s new quota regulation. Recalling that 35-40 percent of Turkey’s steel exports are directed to the EU, he stated that, if quotas are reduced by 50 percent as of July and the reference years are set as the 2022-24 average, Turkey’s exports to the EU could decline by 60-65 percent. He noted that such a scenario would mean a loss of approximately $3 billion, stressing that negotiations with Europe are essential.
Competition to intensify after 2026
The candidate to the ÇİB chairmanship pointed out that Europe is supporting its steel industry with billions of euros in grants for decarbonization and new investments, while in the US the steel sector has been restructured following tariff measures and has reached high profitability levels.
On the other hand, he stated that, due to rising costs, the Turkish steel industry will face a more challenging export environment after 2026. Nevertheless, he underlined that the sector has successfully overcome similar difficulties in the past.