Turkish Steel Industry's Call for Government Support in the Face of Growing Global Competition
The Turkish steel industry has witnessed impressive growth since 1997, when production levels were around 5-6 million metric tons. Today, that figure stands at 40 million metric tons, demonstrating the significant progress Turkey has made in establishing itself as a prominent player in the global steel market. However, despite these gains, the sector now faces rising challenges due to increased competition from both developed and developing nations. As a result, the Steel Exporters Association (ÇİB) is urging the Turkish government to provide crucial support to ensure continued growth and a competitive edge in the evolving global market.
Historical Growth Without Government Assistance
Since its early days, the Turkish steel industry has achieved remarkable growth without relying on government assistance. From 1997 to 2024, production increased significantly, reaching 40 million metric tons. This growth trajectory is particularly notable because it occurred in an environment where state support was minimal. However, Ugur Dalbeler, Vice President of ÇİB, stressed that given the increasing global competition and the structural shifts within the industry, now is the time for government intervention to maintain Turkey’s steel industry’s growth and global market position.
Impact of Protectionism and Rising Tariffs
Dalbeler pointed out that in recent years, the global steel industry has faced a major shift, driven largely by protectionist measures such as additional tariffs and trade restrictions. He specifically referenced the trade policies during Donald Trump’s presidency, when the US imposed high tariffs on steel imports, which were followed by similar actions from Europe. These protectionist measures have reshaped the competitive landscape, strengthening steel industries in countries like the US while potentially undermining the competitive position of non-subsidized producers like Turkey.
According to Dalbeler, the importance of steel in the manufacturing industry has grown significantly, with both developed (like the US and European nations) and developing countries (such as China) recognizing its strategic value. He believes that while Turkey has managed to expand its steel production during difficult times, such as the pandemic, the government’s support is now crucial to ensure continued growth and avoid falling behind in an increasingly protectionist world.
Global Shifts: From Global to Regional Steel Markets
Dalbeler also highlighted a fundamental shift in the global steel market. As global competition intensifies, steel production is no longer dictated by a global market alone; there is now a strong emphasis on regional markets. This is particularly evident as the US and Europe focus on strengthening their domestic steel industries through tariffs and protectionist measures. For Turkey, this trend presents both challenges and opportunities, as it must adapt to regional demands while navigating new global trade barriers.
Turkey's Steel Export Success Despite Challenges
Despite these challenges, the Turkish steel industry has shown remarkable resilience. In 2024, Turkish steelmakers increased production by 9.4% year-on-year, reaching 36.89 million metric tons. At the same time, steel exports grew by an impressive 27.6% year-on-year, totaling 13.4 million metric tons. This growth reflects the sector’s ability to thrive under tough conditions, but it also underscores the importance of sustaining this growth through government policies and support.
Government Support is Key to Sustainable Growth
While the Turkish steel sector has managed to grow in the face of adversity, ÇİB officials stress that for the country to remain competitive on the world stage, especially in the face of increasingly protectionist measures globally, state support is indispensable. Mehmet Ali Fincan, a member of ÇİB’s Board of Directors, reinforced this argument by stating that with competition intensifying globally, government intervention is crucial to ensuring the sustainability of the Turkish steel industry and positioning it for continued success in the international market.
The Turkish steel industry faces growing challenges due to the protectionist policies of other countries and the global shift toward regional competition. To stay competitive, the industry needs government-backed policies to maintain sustainable growth, overcome trade barriers, and enhance its global market position.
State Support for Turkey’s Steel Industry: What Is Needed?
Dalbeler and Fincan emphasized several specific measures that the Turkish government could take to help support the steel industry:
1. Investment in Innovation and Technology: Encouraging investment in innovation and green technologies could help Turkey’s steel industry reduce emissions and increase efficiency, helping it stay competitive in the face of tightening environmental regulations globally.
2. Tax Incentives and Financial Support: Introducing tax incentives or direct financial aid to support steel production would help Turkey’s steel sector remain competitive in a market where other countries are already offering such support.
3. Trade Protections and Market Access: Implementing measures to counteract the effects of protectionism and ensuring fair market access would allow Turkish steelmakers to continue expanding exports, particularly in markets where tariffs and trade barriers are limiting growth.
4. Enhanced Trade Partnerships: Strengthening trade partnerships with non-European countries could help offset the impacts of protectionism in the US and Europe, opening up new markets for Turkish steel exports.
Turkish Steel Industry’s Economic Significance
The steel industry is a cornerstone of Turkey’s economy. In 2025, Turkey's steel consumption rose to 557 thousand metric tons in just the first two months of the year, underscoring the importance of steel to domestic demand. This growth in consumption highlights the resilience of the steel sector and its vital role in supporting the broader manufacturing and construction industries in Turkey.
KEY TAKEAWAYS
• Remarkable Growth: Turkey’s steel industry has grown from 5-6 million metric tons in 1997 to 40 million metric tons today, showcasing significant progress without state support.
• Impact of Protectionism: Rising global protectionism, including tariffs from the US and Europe, has led to a more challenging competitive environment for non-subsidized producers like Turkey.
• Shift to Regional Markets: The global steel industry is increasingly shifting focus from global competition to regional dynamics, necessitating strategic responses from Turkey to remain competitive.
• Impressive Export Growth: In 2024, Turkey saw a 9.4% increase in steel production and a 27.6% increase in steel exports, demonstrating resilience despite global challenges.
• Need for Government Support: With global competition intensifying, ÇİB calls for state intervention to provide tax incentives, financial support, and protection from unfair trade practices to sustain Turkey’s position in the global steel market.
• Strategic Sector for Economy: The steel industry continues to play a crucial role in Turkey’s economy, with increased domestic consumption and export growth highlighting its importance in sustaining industrial growth.
