Global Contraction Reshapes Steel Strategy: Turkey Pivots to Nearby Markets
Growing uncertainties in the global economy, price pressures, and intensifying protectionist trade measures are pushing Turkey's steel sector into a new era of export strategy focused on nearby markets and value-added products.
Turkey's steel sector is entering a new era in its export strategy amid rising global uncertainties, price pressures, and intensifying protectionist trade measures. Having closed 2025 with a volume increase, the sector now aims to sustain growth by focusing on nearby markets and increasing value-added product exports.
In 2025, Turkey's steel exports reached 19.43 million tonnes, with a total export value of $16.5 billion. The average export price per tonne remained at $851. Despite the decline in unit prices, the increase in tonnage demonstrated the sector's ability to adapt to global competitive conditions.
Steel Exporters' Association (ÇİB) Chairman Adnan Aslan, evaluating the 2025 performance, emphasized that this growth was achieved under difficult market conditions. "Prices are under serious pressure in the global steel market. China's high export volumes and the global supply surplus are pushing prices down. In this environment, growth is only possible by focusing on the right markets and maintaining a flexible strategy," he said.
Nearby Markets at the Heart of the Strategy
Aslan stated that the sector would focus on geographically close countries rather than overseas and high-cost markets in the coming period. "The steel sector is becoming increasingly regionalized. Logistics costs are rising in distant markets, and customs duties and quotas create significant barriers. In contrast, we have advantages in nearby markets such as fast delivery, flexible production, and strong commercial relationships," he said.
Noting that EU member states, non-EU European markets, the Balkans, Eastern Europe, and neighboring countries are among the priority target markets, Aslan said that deepening in existing markets would be the core strategy. He added that sector-level efforts in markets such as Romania, Bulgaria, the Balkan countries, Georgia, and Azerbaijan are directly contributing to export growth.
Recovery Expected in Europe
Aslan drew attention to the Carbon Border Adjustment Mechanism (CBAM) uncertainty as one of the main reasons for the stagnation in the European market, noting that exports started 2026 with a decline due to this uncertainty, but that a recovery is expected once the process becomes clearer. "Purchases in Europe were delayed for a while. However, starting from March and April, we expect a recovery driven particularly by European demand. This shows how correct the nearby market strategy is," he said.
Recalling that steel exports to the European Union reached 7.9 million tonnes in 2025, Aslan noted that exports to non-EU European countries also reached 3.7 million tonnes. He pointed out that the European market accounts for a 60% share of total exports.
Shift to Value-Added Products Is Inevitable
Aslan stated that value-added products form the second pillar of the new growth strategy, noting that long products and rebar still hold a significant share in exports but that this structure is not sustainable. Emphasizing that rebar, while a tonnage leader, has limited added value, Aslan noted that the share of value-added products such as cold-rolled, galvanized, coated products, fasteners, and stainless steel will increase in the medium and long term. "With value-added production, we will both reduce price pressure and transition to a more sustainable export structure," he said.
Regional Growth and Stability Target
According to Aslan, rising quotas and tariffs in global trade are among the most challenging factors for the steel sector. "Steel is one of the sectors facing the most quotas and tariffs in the world. When you achieve export growth in one market, you can quickly face a new trade measure. For this reason, regional growth and product diversification are no longer a choice but a necessity," he said.
2026 Target: Deepening in Nearby Markets
Sharing expectations for 2026, Aslan said the sector has set a target of 20 million tonnes in volume and $17 billion in value. "By focusing on nearby markets and increasing the share of value-added products, we aim for more balanced growth. The steel sector will henceforth seek growth not in distant markets, but in the near geography and through quality products," he said.
World Steel Summit to Be Held in Istanbul
Aslan also touched on the steel summit to be held in Istanbul this year, noting that the Steel Networking Summits 2026, scheduled for October 25–27, 2026 in Istanbul, will be a landmark international conference bringing together leading steel producers, traders, supply chain managers, public authorities, and policy makers at Turkey's strategic geopolitical crossroads. He noted that holding the conference in Istanbul offers participants commercial access, logistical advantages, and regional business opportunities thanks to Turkey's unique position at the intersection of European, Asian, and Middle Eastern markets. "With this event, we aim to go beyond market trends and convey the political, economic, and regulatory dynamics shaping the sector directly from decision-makers. More than 500 industry professionals from 80 different countries are expected, with over 40 speakers. We believe significant steel trade will also take place at this platform where the leaders of the global steel sector will come together," he said.