TÇÜD Secretary General Yayan: Turkey has become a target market in the steel sector

Dr. Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TÇÜD), stated that the Turkish steel sector has become a target market for foreign producers along with strengthening domestic demand. Speaking at the "New Horizons in Steel Markets" conference organized by SteelOrbis, Yayan pointed out that the import pressure, especially from Russia and China, has increased.

Yayan summarized the general trend of the sector as "like a Mehter band, two steps forward, one step back". Reminding that global crude steel production has systematically declined since 2021, Yayan stated that Turkey has entered a recovery process following the decline in 2022 and 2023. According to current projections, production is expected to reach 31.3 million tons, placing Turkey in seventh place in the global league. The gap with South Korea and Russia is gradually narrowing.

However, according to Yayan, these figures alone are not sufficient. The growth rate in the sector lags behind the overall economic growth.

Increasing consumption, increasing risk

On the consumption front, there is a different picture. Final product consumption is projected to rise by 2.6% to 39.3 million tons in 2025. This strong demand has positioned Turkey as a market that whets the appetite of exporting countries. Yayan emphasized that the import from China originating from the Far East creates significant pressure, while reminding that the state support provided to the steel sector in China is over 10 times the OECD average.

In Europe, almost daily announced protectionist measures and the tough stance of the US also narrow the maneuvering space of Turkish producers.

Urgent call to the government

Yayan stated that additional burdens such as the TRT share and environmental contribution fee create a serious hump on producers and asked for support from the government:

The government needs to take measures. We cannot afford the luxury of remaining silent in the face of measures beyond our borders. Most countries do not allow the inward processing regime. We have reached a level where it cannot be allowed inside either. Measures to limit imports should be taken.

India: A new China?

Yayan also pointed to a new danger that will further intensify competition in the global steel sector: India. Stating that India, following China, has also entered an aggressive capacity increase effort, Yayan said that the country is growing by about 10% annually and has the potential to compete head-to-head with China.

Saying "While we had one China, now we have two", Yayan warned that India will carry global competition to a much more challenging ground.

Source: Demir Çelik Store