Turkey steel industry faces rising trade deficit and EU export barriers

Turkey's steel industry is facing significant challenges due to rising trade deficits and new protectionist measures in international markets. Uğur Dalbeler, Chairman of the Steel Exporters' Association, reported that while Turkey produced 38.1 million tons of steel last year—surpassing Germany and ranking seventh globally—the trade deficit in the sector continues to grow.

Dalbeler noted that Turkey exported approximately 20 million tons of steel last year while importing around 23 million tons. He highlighted that imports account for nearly 50% of Turkey's steel consumption, a much higher ratio than the 10-20% seen in many other countries. This imbalance is exacerbated by low-priced products from China, which Dalbeler stated can be offered at approximately $550 per ton, making it difficult for local producers with higher costs to compete.

Furthermore, new European Union import regulations, effective July 1, have introduced a duty-free quota limit of 18.3 million tons and a 50% tax on imports exceeding that limit. Despite Turkey's existing customs union and free trade relationships with the EU, Dalbeler predicts that Turkish steel exports to the EU could drop by half, potentially falling from 7.9 million tons in 2025 to 4 million tons due to these quotas.