Speaking to Turkish TV channel Ekotürk regarding the current situation in the Turkish and global steel industries, Uğur Dalbeler, vice president of the Turkish Steel Exporters’ Association (CIB), stated that, even though Turkey has been among the world’s leading countries in terms of steelmaking until recently, the competitiveness of the Turkish steel sector is gradually decreasing. Mr. Dalbeler said that, although Turkey’s steel exports amounted to 15 million mt in September 2022, this volume dropped to 10 million mt in the same month this year and that this drop corresponds to a $5 million loss even though prices last year were below current levels. He added that Turkey even exported 21 million mt of steel and generated a revenue of $23 billion with its steel exports in 2021.
The CIB vice president noted that the current situation shows that the growth period has ended and that stagnation has kicked in and that, if growth cannot be sustained, this will negatively affect the areas where steel is mostly consumed. He said that the fact that Western countries realized Turkey’s potential and wanted to cut it off since they saw it as a dangerous rival led to the current situation and that a transition from globalization to regionalization is seen.
Stating that the closing of doors by developed countries will have a negative impact on the growth of developing countries, Mr. Dalbeler referred to China, where two-thirds of the steel sector is backed by the state, as another dangerous player. He added that the Turkish steel sector has submitted an application to the necessary institutions on the grounds that China made dumped sales and that the officials will launch procedures. He also pointed out that the inward processing regime in Turkey should be reviewed and that turning a blind eye to imports would lead to a halt in domestic production.
Meanwhile, Dalbeler underlined that Turkey, which once claimed first place in Europe in terms of steel production, has fallen to eighth or ninth place globally, and that Vietnam and Iran are currently on the rise and will likely leave Turkey behind if they stay on course. Lastly, he emphasized that the world is now focusing on carbon emissions and that Turkey will have an edge when the carbon tax starts to be fully implemented, since 75 percent of steel production in Turkey is based on electric arc furnaces. However, according to Dalbeler, until then, Turkey should find a solution to unfair competition, prioritize investments in renewable energy infrastructure, and carry out tough negotiations with trade partners such as the US and the EU in order to survive.