The Turkish Steel Producers’ Association (TCUD) has shared its evaluations regarding the lack of trade measures and uncertainties in the export markets in 2024.
In 2024, a recovery was seen in Turkey’s steel exports, while its steel imports also increased, by 1.7 percent year on year, supported by increases recorded in the fourth quarter. The association said that increases in imports from Far Eastern countries such as Indonesia, Vietnam and especially China negatively affected the industry. Noting that a significant part of Turkey’s 38.3 million mt of steel consumption in 2024 was met by imports, the TCUD stated that the trade policy measures implemented during the year could only partially restrict imports, due to the flexibility provided by Turkey’s inward processing regime. Pointing out that there is a need for trade measures covering all products, such as the measures taken by the EU and the US, the association stated that the development of policies that encourage local supply and the more effective use of new capacities will increase the country's exports and production. It is predicted that tight monetary policies will be replaced by expansionary policies in 2025 and the upward movement in the industry’s capacity utilization rates will continue in line with the expected increase in steel consumption, the TCUD said.
From a geopolitical perspective, the TCUD stated that, although the reconstruction period has begun in Syria, the fact that political stability has not yet been established in the country creates uncertainty in terms of trade, and a similar situation is seen in both Ukraine and Gaza.
Meanwhile, there are concerns that EUROFER’s initiatives aimed at restricting scrap exports before 2026, when the EU’s CBAM will become effective, will reduce scrap collection activities, endanger scrap supply, and disrupt the sustainability of the Turkish steel industry and its green transition efforts. The TCUD noted that any restrictions on EU scrap exports would harm the circular economy.