Turkey's Production Capacity of 60 Million Tons Largely Remains Idle

Veysel Yayan, Secretary General of the Steel Producers Association, stated that the capacity utilization in the iron-steel sector remains dangerously idle, saying, "The increasing trend of protectionism worldwide has made our country vulnerable to unfair competition conditions. Therefore, it is necessary for our country to take measures based on reciprocity principles against protectionist measures. Already, the significant increases in exports to our country by China, Russia, India, and some Far Eastern countries, which cannot overcome the protectionist barriers of the USA, EU, and many other countries, have led to domestic production suffering and Turkey's capacity of 60 million tons remaining largely idle."

Asian countries are directing their surplus to international markets at low prices

Highlighting that the iron-steel industry in Asian countries is state-supported, Veysel Yayan said, "The influx of steel products originating from China and the Far East into the Turkish domestic market has rapidly increased in recent years, creating significant pressure in the sector. Products from these countries enter the market at prices well below the costs of local producers, thanks to multifaceted and intense state support. In Turkey, producers are trying to operate under high input and financing costs, reducing their production in case of demand contraction. In contrast, despite fluctuations in consumption, China, the world's largest steel producer, and other Far Eastern and South Asian countries, instead of reducing their production, are directing their surplus products to international markets at low prices, trying to solve their problems arising from domestic demand contraction at the expense of steel producers in other countries. This approach not only disrupts the global price balance but also deepens unfair competition, leading to destructive consequences in the global steel sector. Since 2020, imports from China have increased more than tenfold. The rapid increase in imports is causing the capacity utilization rate of the domestic steel industry to remain at low levels. This limitation in capacity utilization leads to the postponement or cancellation of new investments, negatively affecting the sector's potential for sustainable growth," he said.

Turkish steel is of high quality and preferred globally

Touching on the quality issues of steel products imported from China and the Far East, Yayan said, "Steel products imported from China and the Far East sometimes cause problems in terms of quality consistency 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, on the other hand, has proven itself in terms of quality. Today, it exports to around 180 countries. International standards (EN, ASTM, TSE, etc.) 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 on a global scale," he said.

Source: Demir Çelik Store