During the panel, Adalı drew attention to Türkiye's scrap dependency and underlined the need to both increase domestic scrap generation and develop new supply models in terms of sustainability in production.
“Scrap production may lag behind demand growth”
Pointing out that scrap, the most critical raw material for steel production, may experience a supply-demand imbalance in the coming years, Adalı stated, "Scrap is not a production, therefore it is a limited resource. The current demand of 650 million tons is expected to increase to 750-800 million tons in the 2030s. However, it does not seem possible for scrap supply to catch up with this demand growth rate. This will raise the issue of supply security, especially for Turkish producers."
“India's rise will further increase the value of scrap”
Referring to India's growth in the steel market, Adalı stated: "With India's entry into the market and global restrictions, scrap will become almost gold for us. For scrap dealers in Europe, this will create price pressure in their domestic markets, and some may even withdraw from the market."
Stating that steel producers need to make strategic decisions in this process, Adalı added, “Although it is expensive, it seems inevitable that producers will turn to alternative raw materials such as direct reduced iron (DRI).”
“We have to increase domestic scrap generation”
Adalı drew attention to the importance of the amount of scrap generated in Türkiye and made the following assessment:
"Currently, Türkiye has a scrap production potential of approximately 10 million tons. This can be further increased with resources such as industrial residues and domestic recycling. However, this increase will not happen on its own. Idle points must be identified, the private sector must be active and scrap dealers must be given factory support. Otherwise, there will be serious bottlenecks in the sector."
“Relying on European scrap supplies is risky”
Adalı also expressed the risks of depending only on the European market with the following words: "This is not a time to do business by depending on Europe. Türkiye should explore external resources, but in doing so, it should develop structural and partnership-based models, not just commercial ones. It is not easy to establish terminals in markets such as the US; local connections are a must. In order to do business in those markets, it is necessary to reach local people who know the field."
“Iron-steel and scrap companies should work together”
At the end of his speech, Adalı emphasized the importance of cooperation within the sector and said, "It is critical for scrap companies and iron and steel companies to work together in terms of both cost and sustainability. If Türkiye wants to continue this match as an exporting country, it can only keep its cost structure in balance with such cooperation."
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