Turkey’s steel sector is entering a new phase of strategic adjustment. Faced with persistent global price pressure, rising trade barriers, and slowing demand in distant markets, exporters are refocusing on nearby geographies while preparing to move up the value chain.
According to the Turkish Steel Exporters’ Association (ÇİB), Turkey exported 19.43 million tons of steel in 2025, generating USD 16.5 billion in revenue. While export volume increased, the average export price remained at USD 851 per ton, reflecting continued weakness in global steel pricing. The sector’s ability to raise tonnage despite declining unit prices shows its adaptability in a challenging international environment.
ÇİB Chairman Adnan Aslan described the shift as structural rather than temporary. “The steel industry is becoming increasingly regional. Instead of distant, high-cost markets, we will focus on neighboring geographies where we have logistical advantages and faster delivery capabilities,” he said. In the medium term, he added, sustainable export growth will depend on increasing the share of value-added products.
Europe at the Core of the Near-Market Strategy
Europe remains the anchor of Turkey’s steel exports. In 2025, shipments to the European Union reached 7.9 million tons, while exports to non-EU European countries totaled 3.7 million tons. Combined, Europe accounted for roughly 60% of Turkey’s total steel exports.
The sector expects demand in Europe to gradually recover in 2026. Uncertainty surrounding the EU’s Carbon Border Adjustment Mechanism (CBAM) led many buyers to delay purchases in early 2025. However, the European Commission confirmed that the transitional reporting phase of CBAM continues until the end of 2025, with financial obligations beginning in 2026. As compliance procedures become clearer, Turkish exporters anticipate improved order visibility from the second quarter onward.
The focus on regional markets also reflects broader trade realities. Steel remains one of the most protected industries globally. According to the OECD’s latest Steel Market Developments report, excess global steel-making capacity exceeded 550 million tons in 2024, intensifying export competition and encouraging protective measures across multiple jurisdictions. For Turkish producers, this means that securing market access close to home may offer greater stability than chasing distant growth.
Imports and Competitive Pressure
The strategic re-calibration comes amid record-high steel imports into Turkey. In 2025, imports reached 18.9 million tons, up 8.6% year-on-year, even though total import value declined slightly. Russia and China were the primary sources of this surge.
Russian semi-finished products, particularly slabs and billets redirected from European markets under sanctions, flowed increasingly into Turkey. Chinese producers, facing domestic oversupply, maintained aggressive pricing in export markets. World Steel Association data shows that China’s crude steel production reached 960.8 million tons in 2025, sustaining downward pressure on international prices.
This environment has reshaped Turkey’s internal production balance. Higher energy costs have encouraged some mills to rely more on imported semi-finished materials rather than melting scrap domestically, highlighting the growing competition between electric arc furnace producers and re-rolling mills.
2026 Outlook: Regional Stability, Structural Transition
The sector has set a 2026 export target of 20 million tons and USD 17 billion in value. Achieving that goal will depend on two factors: successful deepening in near markets and continued transformation toward higher-value output.
At the same time, Istanbul is positioning itself as a strategic hub for industry dialogue. The Steel Networking Summits 2026, scheduled for October 25–27 in Istanbul, is expected to bring together more than 500 professionals from 80 countries. Organizers aim to create a platform that goes beyond market trends to address political, economic, and regulatory dynamics shaping global steel trade.
For Turkey’s steel industry, the plan is clear. Growth will no longer be pursued primarily through volume expansion in distant markets. Instead, regional proximity, logistical agility, and product sophistication are becoming the foundations of long-term competitiveness.
Source: Turkish Steel Exporters’ Association (ÇİB): https://www.cib.org.tr/tr/haberler-celikciler-yakin-pazarlara-odaklandi-ihracat-katma-degerli-urunlerle-buyuyecek.html
＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊
GÖNÜLTAŞ, Mehmet（Reporter）
Freelance journalist based in Istanbul, Turkey. He writes on international relations and diplomacy, with a focus on Japan–Turkey relations, military affairs, and democratic governance. His hobbies are running, language study, and traveling.
＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊
