Metal Expo 2025 opened its doors at the Istanbul Expo Center. Organized by Sky Fuarcılık, with SteelRadar as the event partner, the conference program began following the opening speeches.
On the first day of the conference, sessions were held under the theme “New Dynamics of Global Competition and Strategies of Turkish Steel manifacturers.” Speaking at the session, Eftal Pehlivan, Foreign Sales Manager of İzmir Demir Çelik (İDÇ), discussed the impact of increasingly evident global protectionist policies, weak demand conditions, and geopolitical risks on Turkish steel producers in 2025.
Under the theme of “New Dynamics of Global Competition,” Pehlivan highlighted the challenges faced in international markets, as well as the strategic approaches being implemented to turn these challenges into opportunities.
İzmir Demir Çelik’s Production Power
Operating since 1975, İzmir Demir Çelik (İDÇ) is one of Türkiye’s leading integrated long steel product manufacturers. Its integrated facility in Aliağa includes two steel mills, three rolling mills, a port operation, and a thermal power plant with a capacity of 350 MW. Additionally, the company aims to increase the capacity of its commissioned 70 MW solar power plant to 150 MW.
With the commissioning of its new steel mill investment in 2024, IDC’s annual liquid steel production capacity reached 3.1 million tons. With this capacity, IDC has become one of the top five steel producers in Türkiye.
With a product portfolio that includes long and semi-finished products such as rebar, profiles, and billets/blooms, the company exports to markets in Europe, North Africa, the Middle East, and South America. Leveraging the İDÇ Port and its robust logistics infrastructure, the company enhances its competitiveness by offering high-capacity and fast-loading capabilities.
Capacity Issues in the Sector
Pehlivan emphasized that operating at a capacity utilization rate above 75% is a fundamental requirement for sustainability in the steel industry. However, he pointed out that the decline in capacity utilization to below 60% over the past two years poses a serious threat to the sector.
İDÇ uses scrap as the main raw material in its electric arc furnace production model. However, due to uncertainties in scrap supply during the first half of 2025, the company has shifted towards a hybrid and flexible raw material strategy. By optimizing costs through the use of both scrap and billets, İDÇ aims to maintain its competitiveness in export markets.
The region from which Türkiye imports the largest share of billets is Asia (China, Indonesia, Vietnam, Malaysia) with a 50% share, followed by Russia & Ukraine and the Gulf countries.
Europe and the CBAM Process
Pehlivan highlighted that Europe’s share in Türkiye’s trade has decreased from 40% to 25% over the past two years, stating, “This has caused a significant loss in the steel sector. With the EU’s revision of the quota system, a country-specific quota of 22,892 tons was assigned as of January 1st. According to İDÇ, although there is no significant increase in tonnage, this has provided gains in terms of trade predictability. Additionally, the Carbon Border Adjustment Mechanism (CBAM), which will come into effect on January 1, 2026, will tax embedded carbon emissions in imported products. However, the lack of clarity around the emissions methodology poses risks in pricing and contract processes.”
Reference emission values are estimated at 1.3 tons of CO₂ for blast furnace production and 0.2 tons of CO₂ for electric arc furnace production. Highlighting Europe’s shift toward low-carbon production, Pehlivan said, “Today, producing quality alone is no longer enough; it is also necessary to manage regulatory risks.”
North Africa is Rising
In his speech, Pehlivan highlighted North Africa’s potential to become a green steel production hub in the future. He pointed to renewable energy investments in Morocco, Egypt’s competitive export structure, and new investments in countries such as Mauritania, Algeria, and Libya, stating that these developments will make the region an important supply center for Europe.
He emphasized that the 4 million-ton capacity DRI plant to be established in Egypt and Morocco’s USD 32 billion hydrogen-based green steel vision will create a new area of competition for Turkish manufacturers.
According to İDÇ data, in the first seven months of 2025, one out of every three tons of Türkiye’s profile exports was made to North Africa. However, it was noted that once the investments are completed, Turkish manufacturers could face the risk of losing their existing markets.
U.S. Market and Uncertainties
Eftal Pehlivan stated, “The 50% tariff imposed by the U.S. under Section 232 and the year-end anti-dumping investigations pose significant risks for Turkish manufacturers. According to İDÇ, although the U.S. market is of strategic importance, it has become a highly unpredictable area under current conditions. It was reminded that the U.S. has initiated investigations into anti-dumping and countervailing duties on construction rebar imports from Türkiye and Mexico. The incentive rate for Kaptan Demir Çelik is 5.54%, while it is 0.03% for Çolakoğlu Metalurji. Between January and August 2025, the U.S. imported 99,311 metric tons of construction rebar from Mexico and 67,042 metric tons from Türkiye.’’
Domestic Market and Financing Conditions
Pehlivan stated that sluggish demand and high financing costs still stand out in the Turkish domestic market; scrap prices remaining horizantal in the USD340-345 per ton range reflect the cautious sentiment in the market. In Europe, although quota revisions offer limited opportunities in favor of Türkiye, these developments are seen as efforts to maintain the current position rather than to scale up.
Global Projections
Pehlivan stated, “According to global projections, China’s share of global steel demand will decrease from 49% to 31% by 2050. In contrast, India will nearly triple its steel consumption, increasing its share from 8% to 21%. İDÇ is focusing on gaining a competitive advantage through cost optimization, an integrated production structure, logistics strength, and sustainability-focused investments in the current volatile environment. The company aims to complete 2025 with ‘transparent, disciplined, and unfaltering steps.’’
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