Steel producers demand measures against imports

Turkish iron and steel producers have requested measures to be taken, citing that products produced with state protection, especially in the Far East, and not complying with standards, cause unfair competition in the domestic market and lead to idle production capacity.

Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TSPA), told an AA reporter that the acceleration of protectionism trends worldwide has made Turkey vulnerable to unfair competition conditions.

Emphasizing that measures should be taken within the framework of reciprocity principles against protectionism measures, Yayan said, "The high rate increases in exports to our country by China, Russia, India, and some Far Eastern countries, which cannot overcome the protectionism walls of the USA, the European Union (EU), and many other countries, have caused domestic production to suffer and Turkey's capacity of 60 million tons to remain largely idle."

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

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

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

Pointing out that this approach disrupts the global price balance while deepening unfair competition, Yayan continued:

"Since 2020, imports from China have increased more than tenfold. The limitation in capacity utilization due to 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 occasionally 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. However, the Turkish steel sector 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 thanks to quality control and traceability mechanisms, product reliability is ensured at a high level. This makes Turkish steel preferred not only in the domestic market but also globally."

"Antidumping alone is not enough"

Haluk Kayabaşı, CEO of Kibar Holding, also stated that dumped products undermine the appetite of local industrialists, noting that products priced below cost due to 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 antidumping duty alone will not be sufficient to protect the sector. In addition, it is crucial to effectively conduct origin inspections, increase quality controls, and prefer local products in public procurements. 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 antidumping and customs duties announced by the USA recently, stating that Turkey should also decisively implement policies that will protect and develop its production power similarly.

Drawing attention to 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 also 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.

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

"The most critical element for this is to prioritize the supply of raw material needs of producers from other local producers. Turkey has a very strong production infrastructure in both carbon steels and stainless steels. Evaluating this potential and creating an industrial ecosystem that supports each other will ensure that investments become permanent and value-added production strengthens. Thus, our country will not only be a consumer but also strengthen its position as a production hub in the 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 financing subsidies. In other words, the cheapness is not due to efficiency but due to 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 damages"

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

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 corrective investments, but it also becomes impossible to protect what exists. The steel sector must make serious investments every year just to protect what exists. If no measures are taken, the Turkish steel sector will experience irreparable damages. If you don't have steel, you don't have a manufacturing industry, you don't have industrial development, you don't have exports. Steel is the most used material in every place touched by humans. 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 world's most expensive steel. This does not allow any industry to strengthen."

Source: Anadolu Ajansı