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ÇİB: Turkish steel sector focuses on green transformation to counter price pressure

ÇİB: Турецкий сталелитейный сектор фокусируется на зеленой трансформации, чтобы противостоять ценовому давлению

According to media reports, the Turkish Steel Exporters Association (ÇIB), which took part in the Wire & Tube 2026 exhibition held in Dusseldorf from April 13 to 17 with the participation of 197 companies, said that Turkish firms, distinguished by geographical proximity, fast delivery and high quality, will focus on green transformation and investment in renewable energy to mitigate growing protectionism and war-induced price pressures in global trade.

Assessing the impact of global events on the sector, Selcuk Yilmaz, member of the supervisory board of ÇIB, noted that the cost of freight transport has increased by 40 percent due to the conflict between Iran and the United States, emphasizing that a significant part of exports is carried out by sea. Regarding production, he said that rising prices for electricity and natural gas have led to rising costs, adding that energy prices for industrial use were increased from April 4 after a long period, which directly affected production costs.

EU quotas and tariffs create pressure

Stressing that the EU market is crucial for the Turkish steel sector, but quotas and additional tariffs hampered exports, Mr. Yilmaz recalled that quota volumes would be reduced from July 1 and that if the quota was exceeded, a 50 percent tariff would be applied, adding that Turkey had not been able to fully benefit from the Customs Union agreement and that efforts were ongoing to limit the scope of quota reductions.

He stressed that Turkey's geographical proximity to Europe provides a great advantage, noting that Turkish steel can reach European ports in approximately 48 hours, while delivery times from competing countries such as India, Vietnam and Taiwan can take up to 25-30 days. He added that developments in the Strait of Hormuz highlight the risks associated with long-distance supply chains, strengthening Turkey's position as a "safe haven" supplier to the EU.

Investment in green transformation and energy comes to the fore

Stating that the sector is looking for solutions to price pressures, Mr Yilmaz said that green Transformation and investment in renewable energy are key. In line with Turkey's goal of achieving net-zero carbon emissions by 2050, steel producers are increasingly turning to solar energy. Currently, about 15-20 percent of the sector's energy needs are met from renewable sources, and this share is expected to continue to grow.

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