Call for Measures Against Dumped Products from the Turkish Steel Sector

The Turkish Steel Producers Association and industry representatives stated that low-priced steel products from China and the Far East, supported by state subsidies, create unfair competition and reduce capacity utilization. Industrialists emphasized that in addition to anti-dumping duties, origin inspections, quality controls, and the preference for domestic products in public procurement are also of great importance.

Turkish steel producers demanded measures against products produced under state protection in the Far East, which do not comply with standards and cause unfair competition and idle production capacity in the domestic market.

Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TÇÜD), stated that the acceleration of protectionism trends worldwide has made Turkey vulnerable to unfair competition conditions.

Emphasizing the need to take measures within the framework of reciprocity principles against protectionism measures, Yayan said, "The high increases in exports from China, Russia, India, and some Far Eastern countries, which cannot overcome the protectionism barriers of the USA, European Union (EU), and many other countries, have caused significant damage to domestic production and left Turkey's capacity of 60 million tons largely idle."

Yayan pointed out that the steel industry in Asian countries is state-supported and explained that the orientation of steel products from China and the Far East towards the Turkish domestic market has accelerated in recent years, creating significant pressure in the sector.

"The Turkish steel sector has proven itself in terms of quality"

Yayan highlighted that products from these countries enter the market at prices well below the costs of local producers, thanks to multifaceted and intense state support, and stated that Far East and South Asian countries direct their surplus products to international markets at low prices.

Yayan pointed out that this approach disrupts the global price balance and deepens unfair competition, and continued:

"Since 2020, imports from China have increased more than tenfold. The limitation in capacity utilization caused by the increase in imports leads to the postponement or cancellation of new investments, negatively affecting the sector's potential for sustainable growth. Steel products imported from China and the Far East sometimes cause problems in terms of quality continuity and standards. Differences on a batch basis and the reliability of certification are among the most frequently expressed issues regarding imported products. The Turkish steel sector, however, has proven itself in terms of quality. Today, it exports to around 180 countries. International standards (EN, ASTM, TSE) are meticulously applied in production processes, and product reliability is ensured at a high level thanks to quality control and traceability mechanisms. This makes Turkish steel preferred not only in the domestic market but also on a global scale."

"Anti-dumping alone is not sufficient"

Haluk Kayabaşı, CEO of Kibar Holding, also stated that dumped products undermine the appetite of local industrialists, and reported that products priced below cost with state subsidies in countries like China and Indonesia create an unsustainable competitive environment in the Turkish market.

Emphasizing that trade defense instruments must be applied decisively to prevent unfair competition, Kayabaşı said, "The anti-dumping duty alone will not be sufficient to protect the sector. In addition, effective origin inspections, increased quality controls, and the preference for domestic products in public procurement are also of great importance. Especially our industrialists struggling with high financing costs need to be supported with appropriate credit and incentive mechanisms. Thus, the measures taken can create a lasting impact."

Kayabaşı pointed to the anti-dumping and customs duties recently announced by the USA and stated that Turkey should also implement policies that will protect and develop its production power with determination.

Highlighting the importance of stainless steel production for Turkey, Kayabaşı expressed the following:

"Posco Assan's $400 million stainless steel investment is not only a production facility for our country but also means technology transfer, employment, and added value. Stainless steel is a fundamental input in many strategic sectors, from white goods to automotive, defense industry to energy. Therefore, stainless steel should be seen not only as an industrial product but as a strategic security issue. Protecting these investments means protecting Turkey's industrial future."

"Dumped products are cheap due to dirty production"

Kayabaşı explained that to sustain local investments, a fair competitive environment must be created, and effective measures must be taken against dumping, origin circumvention, and subsidized imports.

Kayabaşı emphasized that developing policies to encourage local production is equally important, and noted:

"The most critical element for this is to encourage the procurement of raw material needs from other local producers as a priority. Turkey has a very strong production infrastructure in both carbon steels and stainless steels. Evaluating this potential and creating a supportive industrial ecosystem will ensure the permanence of investments and strengthen value-added production. Thus, our country will not only be a consumer but will strengthen its position as a production hub in its region.

The countries from which dumped stainless steel comes most intensively are China and Indonesia. These products are offered to the market below cost not due to efficiency but due to high carbon emission dirty production, energy, and financial subsidies. In other words, the cheapness does not stem from efficiency but from subsidies and unfair trade practices. In the short term, imported dumped products that seem cheap will cause great harm to Turkish industry in the medium term and will make it dependent on external sources for all kinds of strategic production in the long term."

"The Turkish steel sector will experience irreparable damage"

Uğur Dalbeler, General Manager of Çolakoğlu Metallurgy Inc., also stated that if the capacity utilization rate falls below 75%, the sector will lose its competitiveness.

Dalbeler, who stated that they have been forced to operate with a capacity utilization rate below 60% for the last 2 years, said:

"Under these conditions, not only is it impossible to make remedial investments, but it also becomes impossible to maintain the existing ones. The steel sector is forced to make significant investments every year just to maintain the existing ones. If no measures are taken, the Turkish steel sector will experience irreparable damage. Without your steel, there is no manufacturing industry, no industrial development, no exports. Steel is the most used material wherever humans touch. This sector, which requires a very large capital need, is quite exhausting and requires high technology, needs healthy and sustainable growth. If you don't have a steel sector, you will have to use the most expensive steel in the world. This does not allow any industry to strengthen."

Source: Dünya Gazetesi