Tosyalı Holding warns of risks to Turkey’s steel sector

Fuat Tosyalı, Chairman of Tosyalı Holding, has warned of significant risks to Turkey’s steel sector due to potential shifts in the global scrap metal market. Speaking at the company’s iron and steel facilities in Iskenderun, Tosyalı noted that Turkey is one of the world’s largest importers of scrap metal, with his own company processing approximately 20,000 tons daily.

The warning stems from new scrap-based facilities being commissioned in Europe and potential European Union measures to restrict scrap metal exports. As Europe increases its own capacity through new electric arc furnaces, the availability of scrap for Turkish manufacturers may decrease.

To mitigate these risks, Tosyalı advocated for a strategic shift away from a production model reliant on scrap metal. He emphasized the need for Turkey to enhance its ore processing capabilities and more effectively utilize domestic mineral resources. He stated that future priorities must include raw material diversification, low-carbon production, and renewable energy to ensure sustainable production.