Fuat Tosyali, president of Turkey's Mediterranean Ferrous and Non-Ferrous Metals Exporters Association, outlined the key challenges facing Turkey's steel industry, while emphasizing the need to remain focused on long-term opportunities, according to a report in Turkish newspaper Ekonomim.
Mr. Tosyali noted that while concerns about weak business conditions have persisted for decades, the sector continues to grow along with its stakeholders.
According to Tosyali, the ADMIB region, especially İskenderun and Osmaniye, accounts for almost half of Turkey's total steel production, with a capacity of about 20 million tons of the country's total 37 million tons. The association oversees exports exceeding $3 billion over a wide geographical area.
Rising imports and declining utilization rates
Tosyali reiterated concerns about increasing imports, saying Turkey imports an annual volume of about 18 million tons of steel, mainly from China and other Far Eastern countries, worth 9 billion dollars.
At the same time, domestic capacity utilization decreased. to 62 percent, reflecting continued market pressure.
He added that rising global protectionism and a surge in anti-dumping investigations highlight the need for tougher trade measures, including potential quota systems similar to those in Europe.
Cost pressures are increasing across the sector
Electricity costs remain a major factor, accounting for approximately 25 percent of total production costs. Recent increases in electricity and natural gas prices, ranging from 5.8 to 25 percent depending on user groups, have further increased price pressure.
Freight rates have also increased, and shipping costs have in some cases doubled or tripled due to ongoing geopolitical tensions.
Efficiency and investment seen as key to competitiveness
Tosyaly emphasized that relying on exchange rate fluctuations is not a sustainable competitiveness strategy.
Instead, he highlighted productivity improvements as a key factor, pointing to improvements achieved through
