Turkey’s steel sector is unstable compared to the global one – TCUD

The Turkish steel industry has been unstable compared to the global market, and its development has been uneven. This opinion was expressed by Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TCUD), during the SteelOrbis conference in Istanbul.

Veysel Yayan noted that in the first nine months of this year, Turkey’s economy grew by 3.7%, the construction sector by 11.3%, and the manufacturing sector by 3.9%. At the same time, the steel sector showed only 1% growth on an annualized basis, compared to 9.4% in 2024.

The TCUD Secretary General noted that over the past 20 quarters, Turkey’s GDP has grown and the construction sector has revived after the 2023 earthquake. However, the growth of the national manufacturing industry has not met expectations. In particular, the steel sector has been following a pattern of «two steps forward, one step back.»

«This imbalance is caused not only by fluctuations in our domestic market, but also by global events,» explained the TCUD Secretary General.

Yayan noted that the sector’s ability to stay afloat despite these fluctuations demonstrates its structural strength, but negative factors should not be ignored.

According to TCUD data, capacity utilization rates in Turkey’s steel industry are still below 70%, which is considered “reasonable.” However, according to Yayan, this figure needs to be increased.

The industry association expects final consumption of steel products in Turkey to reach 39.3 million tons (+2.6% y/y) by the end of 2025. The growth in steel consumption makes the Turkish market a target for countries experiencing a decline in local consumption. Yayan noted the growth in exports from China and Russia, and added that supplies from the Far East can also be considered indirect exports from China. In addition, the work of Turkish steel producers is complicated by additional taxes.

Veysel Yayan also noted that the system of equal and fair free trade in the global market is a thing of the past. In particular, European countries are announcing new protective measures, while the US continues its protectionist policy.

It should be recalled that, despite a number of challenges, Turkey may strengthen its position as one of the powerful export centers of the global low-carbon steel supply chain in the medium term, according to Yasin Kanbur, Middle East regional manager at Hangzhou CIEC Group.