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Saying that the world is divided into two in terms of energy costs, that prices are cheap in the east and expensive in the west, Metin Tayfun İşeri, chairman of Turkey’s Association of Flat Steel Exporters and Manufacturers (YISAD) and business development and international affairs director of Çolakoğlu Metalürji, pointed out that Europe, one of Turkey’s largest export markets, receives government support for energy prices. Stating that there are no measures to be implemented in Turkey in the short term, he said that Turkish steel producers are afraid of facing countervailing duties if they receive government support. Regarding the effects of the war between Russia and Ukraine, the YISAD chairman stated that it is not certain how the sanctions will affect Turkey in the coming period, and that the decision to do business with Russia depends on the individual companies. 

Reporting that energy costs are low in South Korea which is a competitor of the Turkish steel industry, Kerem Çakır, chairman of the Association of Cold Rolled, Galvanized and Coated Coil Manufacturers (SOGAD) and general manager of Borçelik, stated that energy costs, whose share in the total cost of standard finished products has increased from 20 percent to 40 percent, have negatively affected the competitiveness of the Turkish steel market. Stating that companies should focus on energy projects, he called on the government to take bold steps in terms of incentives for renewable energy sources. Regarding capacity increases, he stated that Turkey’s coated sheet and cold rolled coil production capacity, of which products the country has been a net exporter for a long time, will increase from 1.5 million mt to 2.5 million mt in the coming period. Mr. Çakır underlined that the Turkish steel industry should fix its trade relations with the US and the EU, so that its products will not remain unsold. Regarding the green deal, the Borçelik general manager said that the Carbon Border Adjustment Mechanism, which will come into force in the EU in 2026, is a technological protection measure. Çakır stated that Turkey urgently needs to establish an emissions trading system parallel to the EU, and that the duties collected should be returned to the industry for transformation projects, especially renewable energy projects, in a fast and transparent manner. 

Saying that Turkey has lost its biggest raw material suppliers due to the war between Russia and Ukraine, Mehmet Çakmur, deputy chairman of Turkey’s Foreign Steel Trade Association and general manager of M Steel Dış Ticaret, stated that imports from Ukraine have completely stopped and imports from Russia have decreased. Indicating that there are concerns regarding the future supply of raw materials in the Turkish steel industry, Mr. Çakmur underlined that the influence of China has not been taken into account. The general manager of M Steel Foreign Trade stated that the war and energy costs were discussed in the west, while there was stagnation in the east. Stating that the Chinese domestic market has stagnated due to the pandemic and the slowdown in the construction sector in China, which obtains cheap energy supplies from Russia, he stated that China has continued its export sales. 

Kemal Saraç, executive board member of the Turkish Steel Pipe Manufacturers Association (CEBİD) and general manager of Yücel Boru, stated that the latest developments and recession expectations in the EU will cause Turkey to reconsider its production and export plans. Mr. Saraç said that the producers, especially in the spiral pipe segment, which requires government support, are experiencing losses due to the exchange rate. Mentioning that investments in the Turkish steel industry are unplanned, Saraç said that it is not possible to commission all new capacities in Turkey next year due to the current market conditions, and, since the raw materials for the produced products are imported, these capacity increases will increase the dependency on imports. 

Gökhan Demiruz, executive board member of Turkey’s Association of Flat Steel Exporters and Manufacturers (YISAD) and chairman of Gökmetal A.Ş., said that many market players restocked due to the supply shortage that emerged with the start of the war and their concerns about increases in prices. Regarding Turkey’s flat steel exports, Mr. Demiruz stated that in the first 11 months of this year, exports of hot rolled coil, cold rolled coil and coated sheet fell by 21 percent, 28 percent, and 32 percent, respectively. There was also a slight decline in imports, but not as sharp as the decrease in exports. Demiruz noted that it is good news that capacity increases will not be implemented in the near term due to recession expectations, adding that the Turkish steel industry had made a timing error.