Under the regulation approved during the European Parliament’s vote in Strasbourg, quotas will see a 47% decrease compared to 2024 levels, while imports exceeding the quota will face an additional 50% customs duty. Through this measure, the EU aims to raise capacity utilization rates, which have decreased to 65% due to high costs and increasing import pressure, to 80% in the short term.
Secretary General of Turkish Steel Producers’ Association Veysel Yayan stated that the EU’s practices are not compatible with the spirit of the Customs Union. He emphasized that Türkiye should seriously evaluate its right to implement countermeasures, which has not been exercised for a long time, adding that Türkiye’s share in the European market has gradually narrowed over the years.
Yayan recalled that Türkiye’s steel exports had previously reached 7-7.5 million mt levels, but approximately 50% of this volume saw a decrease in 2018. He added that the latest decision has once again placed exports under pressure.
Pointing out that the import shares allocated to Türkiye by the EU remain below current levels, Yayan stated that despite additional proposals, the 14.2% import share could not be reached. He noted that this situation does not align with the understanding of the Customs Union and trade relations between the parties.
Yayan also stated that the EU is following an increasingly protectionist trade policy. Despite the “Made in Europe” approach, Türkiye has not been able to gain a practical advantage under the current quota system.
Meanwhile, the possibility of the sector turning to alternative markets has also come to the agenda. Yayan stated that if no improvement is achieved regarding quotas by July 1, the Latin American market could become an important alternative.
Although a slowdown has been observed in global steel production, Yayan emphasized that Türkiye’s production performance remains above the world average. He added that steel production in Türkiye recorded a 5.5% increase, while the global increase remained at 3.5%.
Bloomberg
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