Turkey’s 60 million mt steel capacity has entered a risky period due to the threat of dumped imports. Veysel Yayan, secretary general of the Turkish Steel Producers’ Association (TCUD), Haluk Kayabaşı, chairman of the executive board of Kibar Holding, and Uğur Dalbeler, general manager of Çolakoğlu Metalurji A.Ş., in an interview by Anadolu Ajansı, a Turkish news agency, emphasized that low-priced and non-compliant steel products from China and East Asian countries, supported by state subsidies, are creating unfair competition and reducing capacity utilization in Turkey.
Pressure from unfair competition
- Imports from China have increased tenfold since 2020.
- Limitations on capacity utilization rates have led to the postponement or cancellation of new investments.
- A significant portion of Turkey’s 60 million mt production capacity remains idle.
Turkish producers issue warning
Veysel Yayan stated that subsidized steel products originating from China and the Far East have been increasingly targeting Turkey in recent years, creating serious pressure on the country’s steel industry. He emphasized that these origins are disrupting the global price balance and deepening unfair competition by directing their surplus products to international markets at low prices.
Haluk Kayabaşı stated that antidumping duties alone are not sufficient; origin control, quality control, and the preference of domestic products in public procurement are also necessary. Mr. Kayabaşı said, “Our industrialists, who are struggling with high financing costs, need to be supported with appropriate credit and incentive mechanisms. This way, the measures taken can have a lasting impact.”
Noting that if the capacity utilization rate falls below 75 percent, the Turkish steel industry will lose its competitive power, Uğur Dalbeler said, “Under these conditions, not only is it impossible to make improvements, but it has also become impossible to maintain what already exists. The steel industry needs to make serious investments every year just to maintain its performance. If no measures are taken, the Turkish steel industry will suffer irreparable damage.”