As elections approach in 61 exporters unions, the steel sector Türkiye’s fifth largest industry last year — is experiencing a relatively calmer process. The term of the current president of the Steel Exporters Union, Adnan Aslan, will end in April, while vice president Uğur Dalbeler stands as the sole candidate for the new term. Dalbeler shared the union’s upcoming vision and the risks facing the industry with EKONOMİ.
Dalbeler stated that, in line with the union’s tradition, they act with collective wisdom and a culture of consensus. He noted that the current management will largely remain in place, with only limited adjustments in firm and representation levels. He emphasized that decisions will continue to be taken jointly, as they have been so far, and that no internal issues are expected within the union.
He highlighted that the most critical topic for the new term is the shift in global trade dynamics. As regionalized trade becomes increasingly difficult and protectionist measures increase particularly in Western markets, pressure on the sector is intensifying. Dalbeler stated that the union’s core mission is to open new paths for Turkish exporters and support their growth, and that all efforts will continue in this direction.
Pointing to dramatic changes in export geography over the past 20 years, Dalbeler explained that until 1997, two-thirds of exports were directed to Southeast Asia and the Far East, whereas today these countries have become major competitors. He noted that in 2008 alone, 7 to 8 million tons were exported to the Arabian Peninsula, a market that has now been almost completely lost. North African countries, he added, have become self-sufficient through new investments and have imposed protectionist practices. While competitor countries benefit from state support and lower labor and energy costs, Türkiye still holds advantages in speed, flexibility, and reliability.
Dalbeler pointed out that while delivery from China can take up to one month, Turkish suppliers can deliver the same material within a week. Türkiye remains the largest supplier of construction steel to Western markets, and the ability to produce according to various national standards continues to offer a strong competitive edge.
Dalbeler warned that if the European Union narrows quotas by 50 percent as of July and bases the reference period on the 2022-2024 average, Türkiye’s exports to Europe may decrease by 60 to 65 percent, corresponding to an estimated loss of around USD 3 billion. With 35 to 40 percent of exports directed to the European Community, he emphasized that negotiations with Europe are essential. Türkiye’s position is unique, he stated, noting that the country is part of the European Coal and Steel Community Agreement and a member of the Customs Union, meaning Europe should treat Türkiye differently. He added that recent statements signaling openness to quota negotiations create a potential opportunity.
Looking ahead, Dalbeler said competition will become even more challenging after 2026. While relations in various markets will be strengthened, the issue of state support also needs to be re-evaluated. He noted that under the 1997 European Coal and Steel Community Agreement, the commitment to abstain from state incentives restricts the sector. Meanwhile, Europe supports its own steel industry with grants approaching EUR 30 billion for decarbonization and new facility investments. The US sector similarly restructured after tariffs were introduced.
Dalbeler also drew attention to global price imbalances, stating that the same steel product is sold for USD 450 in China, USD 800 in Europe, and USD 1100 in the US. China’s exports, reaching 130 million tons, are disrupting global equilibrium. Rising energy and labor costs are creating significant pressure on the sector, with hourly labor expenses increasing from USD 3-3.5 to USD 10. Under current conditions, he noted, profitability has become increasingly difficult. Nevertheless, the sector has overcome difficult periods in the past, and Türkiye has never experienced a permanent decline in exports a trend he hopes will continue.
For the new term, the agenda includes coordinated engagement with Ankara and Brussels against the European Union’s quota revisions, updating the Customs Union and related agreements, and reinforcing Türkiye’s allied position by emphasizing that it doesnt pose any national security risk. Additional priorities include strengthening legal and technical defense mechanisms against anti-dumping and safeguard measures, expanding relationships in alternative regions such as Eastern Europe and Africa, developing cost-reducing joint project models, and offering technical guidance for members. Formulating joint solutions to energy, labor, and financing cost pressures is also among the primary goals for the upcoming period.
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