Fuat Tosyalı: The EU should liberalize steel products for countries such as Türkiye and Algeria

Tosyalı stated, “If the EU wants to ensure the sustainability of its steel industry, it should liberalize steel products for countries such as Türkiye and Algeria, which provide upstream production for Europe.”

Speaking at the 56th Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, Tosyalı emphasized that the EU’s measures aimed at limiting imports from Asia—particularly China—are also being applied to Türkiye, which negatively affects the future of the European steel industry. He noted that the EU should source the steel needed by its downstream industries from low-emission upstream producers such as Türkiye and Algeria.

Commenting on Türkiye’s economy, Tosyalı said that the effects of the economic program aimed at reducing inflation have started to become visible. Referring to recent statements by Minister of Treasury and Finance Mehmet Şimşek and Central Bank Governor Fatih Karahan, he noted that inflation has begun to lose persistence and enter a downward trend, which is now being felt in the markets. He added that declining interest and inflation rates are encouraging the business community and making Türkiye’s economy more predictable.

Regarding the steel sector, Tosyalı recalled that Tosyalı Holding is Türkiye’s largest steel producer and ranks among the world’s top 50 steelmakers. Despite global trade restrictions last year, the company achieved record production and exports, and with ongoing investments, it is progressing toward its goal of entering the world’s top 30 and top 20 steel producers.

Tosyalı criticized the EU’s decision to include Türkiye in its global steel import quota reductions, calling it a mistake. He stressed that low-emission upstream steel products from Türkiye and Algeria should be exempt from such quotas, noting that this would enable the EU to accelerate its transition to green steel.

Addressing global steel market dynamics, Tosyalı stated that the industry has been undergoing a structural transformation for the past five years. He pointed out that China accounts for nearly half of global crude steel production, deepening market imbalances. Chronic overcapacity, subsidized supply, weak global demand, and tightening trade and carbon policies were cited as key challenges. Tosyalı added that global excess capacity currently stands at around 680 million tonnes and could exceed 720 million tonnes by 2027.

Finally, Tosyalı emphasized the steel industry’s impact on global warming, stating that governments should no longer support outdated, high-emission production facilities.