Munyar’s column highlighted the rising share of imports in Türkiye’s domestic steel market despite the country being Europe’s largest and the world’s seventh-largest steel producer, as well as the sector’s calls for stronger trade protection. The article also covered rising labour costs, the European Union’s quota measures on steel imports, and the “Steel Networking Summit 2026”, to be held in Istanbul on 25–27 October 2026.
We are Europe’s largest producer, but we export 20 million tonnes and import 23 million tonnes of steel: “Protect us a little”
Steel Exporters’ Association (ÇİB) President and World Steel Association President Uğur Dalbeler and İMMİB Secretary General Dr. Armağan Vurdu met to discuss the “Steel Networking Summit 2026”, which they will organize in Istanbul on 25–27 October 2026. During the meeting, ÇİB Economist Dr. Samet Damar opened his presentation:
Türkiye is the world’s seventh-largest and Europe’s largest steel producer…
Uğur Dalbeler, accompanied by İMMİB Deputy Secretary General Coşkun Kırlıoğlu, interrupted at the beginning of the presentation:
- Our sector produced 38.1 million tonnes of steel last year. We are Europe’s largest steel producer. Despite this, a sector that used to run a foreign trade surplus has become a net importer. Last year, we exported around 20 million tonnes of steel, while imports reached 23 million tonnes.
He asked Samet Damar to present this year’s figures:
- The picture is similar in the first half of this year. Steel imports reached 9.8 million tonnes in the first six months, while exports stood at 11.3 million tonnes in the first seven months.
Uğur Dalbeler pointed to global figures:
- In many countries, steel imports account for 10–15% of total consumption, or at most around 20%. In Türkiye, however, this ratio is approaching 50%.
He stressed that the sector’s main objection was that imported steel had taken over half of the market:
- Our main objection is that manufacturers operating in Türkiye are forced to compete with products coming from many countries around the world without having the same competitive conditions.
He said that, as industry representatives, they had explained the situation to the government and relevant institutions and delivered the following message:
- Protect us a little and eliminate the unfairness…
He said the response they received was:
- Fine, but then do not raise your prices.
He said the sector’s response was:
- If we do not raise prices, we will reach the point of going bankrupt. We either raise prices or go bankrupt.
He noted that Turkish steel enters European Union countries at USD 800–850/t due to quotas:
- In the US, prices reach USD 1,200/t due to the 50% tariff. China, meanwhile, can still offer steel to Türkiye at around USD 550/t. Yet the cost of steel production in our country is around USD 650/t. How can we compete with China domestically under these conditions?
He recalled that Türkiye once needed imports because it lacked sufficient steel production capacity:
- Then investments increased steel production capacity in our country. Building a steel mill and increasing capacity are far from inexpensive. Today, the approach of “steel produced in Türkiye is expensive, so let’s buy cheaper steel from abroad” has come back onto the agenda.
At this point, he referred to the proverb:
- You cannot keep a mill running with water carried from elsewhere…
He stressed that steel is a strategic product:
- There is overcapacity in steel globally, but no country is abandoning its own steel production by saying, “There is excess capacity worldwide anyway.” Because steel is strategic. The pandemic, the Russia-Ukraine war and the supply problems that followed demonstrated this to the whole world.
He emphasized that countries are now looking not only for cheap products but also for reliable sources of supply:
- China, Japan and Korea sell steel to Türkiye. Why can’t Türkiye sell steel to them to the same extent? Look at Japan: it enables domestically produced steel to be sold at higher prices. Profitability in the domestic market provides export competitiveness.
He explained that in Türkiye, the domestic market’s excessive openness to imports is limiting the room for domestic producers to manoeuvre:
- Steel production requires very high levels of capital. Moreover, we are talking about plants where liquid metal is processed at temperatures of 1,600 degrees Celsius. The machinery, production lines and facilities need to be continuously renewed.
He noted that producers in competing countries adopt new technologies every year to improve efficiency and reduce costs:
- In Türkiye, however, when the sector cannot make money, it struggles to make renewal investments. Plants are ageing. This reduces efficiency, increases costs and weakens competitiveness. This is one of the biggest risks facing our sector.
Despite this, he emphasized that Türkiye has significant advantages:
- We are Europe’s largest and the world’s seventh-largest steel producer. We have a strong production infrastructure. The importance of reliable supply centres has increased further with the pandemic and wars. Türkiye can be an important alternative in this equation.
He warned that production capacity must be protected:
- It would be a major mistake to assess the steel sector in isolation. If steel production capacity is lost, the industries that use steel will become more dependent on foreign supply. In other words, the issue is whether Türkiye will remain an industrial country. Because if steel is not strong, industry cannot be strong.
Is there any point in putting such pressure on a sector with Europe’s largest production capacity by allowing imported products to occupy half of the domestic market?
Shouldn’t we listen to the sector’s call: “Protect us a little”?
Labour costs reach 20% of costs; our competitors are China, Vietnam, Pakistan and India
Steel Exporters’ Association (ÇİB) President Uğur Dalbeler argued that the sector’s labour costs have tripled in USD terms over the past five years:
- Labour, which previously accounted for less than 5% of total costs in USD terms, has risen to 15–20%. It can still be said that Türkiye has lower labour costs than Europe and the US.
He added:
- But our competitors are India, Egypt, Pakistan, Vietnam, Indonesia and China. Türkiye’s steel industry is gradually losing its labour cost advantage.
We want the same “tariffed quota” system applied by the EU
Steel Exporters’ Association (ÇİB) President Uğur Dalbeler referred to the early days of US President Donald Trump’s first term:
- After Trump imposed a 25% tariff on steel imports in 2018, the European Union also introduced quotas in 2019 based on the average of the previous three years. A 25% tariff was introduced on imports exceeding the quota.
He said the prevailing view in the EU was that the quota and tariff measures had not provided sufficient protection through 2026:
- As of 1 July 2026, the EU reduced quota volumes by 50% and introduced a 50% tariff on steel imports exceeding the quota.
He also noted that the EU introduced emissions-based taxation through the Carbon Border Adjustment Mechanism (CBAM) as of 1 January 2026:
- When determining country-specific quotas, the EU also established a separate quota pool for countries with which it has free trade agreements (FTAs).
He explained what this means:
- Countries that fill their individual quotas can use the “pool” on a “first come, first served” basis.
He emphasized the following point:
- Although Türkiye has increased its quota through negotiations due to its privileges under the European Coal and Steel Community (ECSC) and the Customs Union, the quota has fallen by around 60% compared with Türkiye’s exports in 2025.
He stressed that countries with FTAs with Türkiye, such as Egypt and Morocco, have also introduced trade protection measures against Türkiye:
- As markets shrink globally, China, Russia, Korea and Japan are also aggressively targeting the Turkish market. Therefore, we are demanding the same “tariffed quota” system applied by the EU.
We will make Istanbul a meeting point for global steel trade
ÇİB President Uğur Dalbeler then turned to the “Steel Networking Summit 2026”, which they will organize in Istanbul on 25–27 October 2026 and which ÇİB Economist Dr. Samet Damar had displayed on his computer screen:
- Industry representatives from more than 80 countries will meet in Istanbul. More than 400 participants will attend the event, where industry challenges and the future of the sector will be discussed alongside networking and B2B meetings.
He added that commercial connections would also be established through buyer delegations held alongside the event:
- The organization will strengthen Istanbul’s role in global steel trade. We aim to make Istanbul an important meeting point not only for regional but also global steel trade.
At this point, he listed key points highlighting Türkiye’s position in the global steel industry:
Türkiye is the world’s fifth-largest steel exporter.
Türkiye is the world’s fourth-largest steel importer.
Türkiye is the world leader in rebar exports.
Türkiye exports steel to more than 200 countries.
Türkiye is the world’s largest scrap importer.
With 70% scrap-based production, Türkiye is a leader in sustainable steel production.
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