At the 20th annual SteelOrbis Conference "New Horizons in Steel Markets", held on Tuesday, December 9, at the Istanbul Marriott Asia Hotel with more than 500 participants, after an introductory speech by Murat Erylmaz, CEO of SteelOrbis, Çolakoğlu Metalurji, CEO and Chairman of the World Steel Association (worldsteel) Ugur Dalbeler stated that the steel industry is going through one of the most difficult unbalanced, turbulent and unfair periods in recent memory, that the biggest problem in the current market conditions is global overcapacity, and that Turkey urgently needs to take protective measures.
Free trade is being replaced by protectionist policies
One of the main topics in Mr. Dahlbeler's speech was the rebalancing of global trade. He noted that countries that have long been considered advocates of free trade have now turned to protectionist policies, while players who hide behind the rhetoric of free trade continue to flood global markets with excessive capacity, distorting competition. Dalbeler stressed that Turkey has been complying with the rules of the European Coal and Steel Community since 1997, but today European policy is increasingly taking a more exclusive position towards Turkey.
The deepening energy price crisis
Energy prices were another important issue highlighted by the Chairman of worldsteel. He stated that the most significant factor weakening Turkey's competitiveness in steel production is the cost of energy: energy prices in the industrial sector have doubled since Russia's invasion of Ukraine in 2022, and Turkey has become one of the most expensive countries in the world for producing steel using electricity. He added that the constantly high level of electricity costs puts long-term pressure on the cost structure of the industry and is not sustainable.
Labor costs and the exchange rate lead to higher costs
Other structural issues that Mr. Dahlbeler raised included rising labor costs and the Turkish lira policy. He noted that the cost of labor in Turkey in dollar terms has increased rapidly in recent years, and that with the entry into force of new nationwide collective agreements in January, these costs are likely to exceed inflation again.
CBAM and EU quotas are a growing risk for Turkey
The EU's Carbon Boundary Adjustment Mechanism (CBAM), which will enter into force on January 1, has created a significant
