In an interview with Turkish newspaper Oksijen, Uğur Dalbeler, chairman of the World Steel Association and CEO of Turkish steel producer Çolakoğlu Metalurji, described steel as not merely an industrial product, but as one of the key elements determining countries’ production strength and strategic capacity. He stated that, in the current environment of intensifying global trade and rising geopolitical risks, steel has once again become a critical strategic material. According to Dalbeler, the sector’s future will be shaped by Chinese pressure, Europe’s carbon regulations and the growing need for secure supply.
Steel as the backbone of industry and defense
Highlighting the strategic importance of steel, Mr. Dalbeler emphasized that the sector plays a critical role not only economically but also in terms of national security, stating, “Without steel, you can have neither industry nor a strong defense.”
He noted that there is a direct relationship between the level of industrialization and steel consumption, adding that strong production capacity directly affects countries’ economic and geopolitical power.
Turkey, with annual steel production of around 40 million mt, ranks as Europe’s largest and the world’s seventh-largest steel producer, with consumption at a similar level. The country exports approximately 19 million mt, while importing around 23 million mt. The EU remains Turkey’s largest export market, accounting for 30-35 percent of total exports, while increasing protectionist measures in the US are among the main factors limiting exports. As a result, the sector is turning toward alternative markets such as Africa, South America, and the Mediterranean region.
China determines global balances
China’s production capacity stands out as the most decisive factor in the global steel market. With annual production of around 960 million mt, China accounts for more than half of global output. Dalbeler stated that the shift toward exports due to slowing Chinese domestic demand in recent years has increased price pressure in global markets, making competition more difficult for other producing countries. He emphasized that global overcapacity is the sector’s biggest problem and that China’s aggressive exports are disrupting market balances.
Carbon regulations create a new field of competition
Stating that the Carbon Border Adjustment Mechanism (CBAM) introduced by the EU is reshaping competitive conditions in the steel sector, Dalbeler noted that Turkey’s use of scrap in approximately 75 percent of its steel production provides a significant advantage in terms of carbon emissions. However, uncertainties in implementation and the use of the mechanism as a protectionist tool continue to pose risks. According to Dalbeler, Europe is using carbon regulations not only as an environmental measure but also as a policy tool to protect its industry.
Opportunities and risks for Turkey
The worldsteel chairman noted that geopolitical developments in the Middle East, disruptions in maritime transport, logistical risks and rising energy costs are creating pressure on the sector. In particular, issues in the Red Sea corridor are increasing insurance and freight costs. However, he emphasized that Turkey’s geographical advantage strengthens its position as a “reliable supplier.” Proximity to the European market, fast delivery capabilities and low-carbon production capacity make Turkey more visible in alternative supply chains.