Turkey leads Europe in steel production

General Secretary of the Turkish Steel Producers Association, Veysel Yayan, stated that the steel sector holds a special position in the global supply chain, saying, "Turkey rose to 7th place and became the largest steel producer in Europe in the 8 months of 2025."

General Secretary of the Turkish Steel Producers Association, Veysel Yayan, emphasized that the Turkish steel sector has a special position in the global supply chain, stating, "While Turkey was the 8th largest steel producer in the world with 36.9 million tons in 2024, it rose to 7th place and became the largest steel producer in Europe as before, as of the 8 months of 2025."

Steel, which is the primary raw material for the construction, automotive, energy, and machinery industries, continues to be one of the indispensable elements of the global economy.

Notable for its durability, recyclability, and wide range of applications, steel is among the most critical building blocks of industrial production worldwide.

Steel production is not only an indicator of industrialization but also a strategic element that determines the economic power of countries. Steel plays a critical role in many areas, from renewable energy investments to infrastructure projects, and stands out as a cornerstone of sustainable growth.

According to data compiled by AA reporter from the World Steel Association, China produced 1 billion tons of crude steel in 2024, which is more than the total production of all other countries in the world.

Following China, which ranks first with 1 billion tons of production, India ranks second with 149 million tons, and Japan ranks third with 84 million tons of production.

The USA is fourth with a production of 79.5 million tons, Russia is fifth with 71 million tons, and South Korea is sixth with 63.6 million tons of production, while Germany follows with 37.2 million tons, Turkey with 36.9 million tons, Brazil with 33.8 million tons, and Iran with 31.4 million tons, making them among the top 10 steel-producing countries.

According to the data, the top 10 countries account for approximately 85% of global steel production. However, China's share of 53% alone makes the global steel supply highly sensitive to China's economic fluctuations.

"The Turkish steel sector exports to a wide geography"

In response to questions from AA reporter, General Secretary of the Turkish Steel Producers Association, Veysel Yayan, stated that the Turkish steel sector exports to a wide geography extending from Europe to America and from the Middle East to Africa.

Yayan emphasized that the sector holds a special position in the global supply chain by exporting steel to over 180 countries, and noted:

"While Turkey was the 8th largest steel producer in the world with 36.9 million tons in 2024, it rose to 7th place and became the largest steel producer in Europe as of the 8 months of 2025, just as before. The ability to quickly adapt to challenging conditions, flexible and resilient production structure, product quality, and early delivery conditions positively differentiate our sector from the steel sectors of other countries. Additionally, our sector has stood out by being able to continue production activities without interruption during economic fluctuations and global crisis periods."

Recalling that many countries around the world had to temporarily halt their production facilities during the COVID-19 pandemic, Yayan emphasized that the Turkish steel sector continued its production.

Yayan stated that despite this strong structure, the fact that China accounts for more than half of global steel production has made not only Turkey but also the steel sectors in all other countries vulnerable to global fluctuations, saying, "Especially in the face of consumption fluctuations, the world's largest steel producer, China, and the decline in domestic consumption in East Asian countries have led to attempts to redirect excess production to international markets, causing significant damage in the global steel sector. A 1% decline in consumption in China means an export of 10 million tons to world markets. With the upcoming new capacities, it is anticipated that a similar steel production-consumption structure could trigger a similar process in other East Asian countries."

"Protectionist measures are emerging as another issue against the sector's competitiveness"

TÇÜD General Secretary Yayan stated that protectionist measures are emerging as another issue against the sector's competitiveness.

Yayan continued his remarks as follows:

"Especially after the 50% tariff from the USA, the recent preparation work by the EU Commission to reduce steel product quotas by 47% and the plans of countries like Mexico and Canada to take similar measures indicate that a large part of the world steel markets will become closed to external supply. This situation makes it inevitable for countries with large-scale capacities, primarily China, East Asian countries, and Russia, which cannot export to these countries, to turn to the Turkish market."

Yayan pointed out that these developments pose a risk of losses in sales to the EU, which is Turkey's largest export market, and noted that producers' capacity utilization rates and profitability levels have been negatively affected.

Yayan expressed that particularly in the long term, the continuation of such measures poses a risk of weakening the sector's investment appetite and delaying new capacity expansion plans, stating, "The Turkish steel sector is developing new strategies to maintain its competitiveness despite all challenges and to increase market diversity by considering alternative markets, focusing on high value-added production, and striving to strengthen its position in the global market by focusing on green transformation investments."

"A strong steel industry is also a guarantee of national security, strategic independence, and sustainable development"

Veysel Yayan stated that having a strong steel industry not only supports economic growth but is also seen as a guarantee of national security, strategic independence, and sustainable development.

Yayan noted that becoming dependent on external sources for steel production increases supply risks in critical sectors and makes the country's decision-making processes sensitive to external factors.

Explaining that the Turkish steel sector has made comprehensive investments compatible with green transformation to increase production capacity in recent years to meet the rising domestic demand and strengthen export potential, Yayan said:

"In this process, the main goal is to further develop a high-quality, competitive, and sustainable production infrastructure. On the other hand, capacity development projects focusing on high value-added products are also attracting attention. Investments aimed at producing special quality steels used particularly in the automotive, defense, energy, and shipbuilding industries are gaining momentum. These investments not only increase Turkey's production quantity but also enhance product diversity and international competitiveness. Although the Turkish steel sector currently has the capacity to meet domestic consumption, the capacity utilization rate remains at a relatively low level of 63%. The share of imported inputs in total consumption in Turkey is around 48%, which is 2.5 times the 20% levels that the EU is seriously concerned about."

Yayan conveyed that the share of imported inputs in consumption in Turkey should also be reduced to reasonable levels as projected in Europe, and added that to support the sector's capacity increase efforts, mechanisms that support domestic production should be implemented, energy costs should be balanced, and financing facilities for environmental investments should be provided.

Source: Anadolu Ajansı