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Monday, February 2, 2026
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Steel sector navigates tough 2025 with higher exports, rising imports and regulatory headwinds

Turkey’s steel sector closed 2025 with higher exports and production, supported by a recovery in domestic consumption in the second half, despite rising financing costs, aggressive import competition and mounting regulatory pressure in key export markets.

Turkey’s steel exports reached 15.1 mln tons in 2025, up 12.5pct YoY, while export revenues rose 4.3pct to USD 10.2 bln, according to the Turkish Steel Producers’ Association. In December alone, export volumes increased 5.5pct YoY to 1.4 mln tons, with export value up 2.1pct to USD 898.9 mln.

Steel imports rose 8.6pct YoY to a record 18.9 mln tons, though import value edged up only 0.7pct to USD 13.1 bln. December imports fell sharply, down 18.6pct YoY to 1.5 mln tons, while import value declined 16.6pct to USD 1 bln.

Turkey’s crude steel production totaled 38.1 mln tons in 2025, up 3.3pct YoY, supported by a strong 18.5pct increase in December output to 3.5 mln tons. Finished steel consumption rose 2.6pct YoY to an all-time high of 39.3 mln tons, with December consumption up 3.8pct to 3.4 mln tons.

Commenting on the figures, TCUD said 2025 was an extremely challenging year for the industry, citing high financing costs, dumping practices and state-subsidized price pressure, particularly from Russia and China. Despite these headwinds, Turkey outperformed global steel production growth by 5.3 percentage points and maintained its position as the world’s seventh-largest steel producer.

TCUD noted that steel consumption contracted 2.4pct in the first half of 2025 but rebounded strongly in the third quarter, rising 17pct and driving full-year growth. Meanwhile, weaker demand in exporting countries increased pressure on the Turkish market, pushing imports to historically high levels.

Russia ranked first among steel suppliers with imports rising 37.9pct to 4.5 mln tons, followed by China, up 13.3pct to 4.2 mln tons.

The association added that rising imports of dumped and subsidized products contributed to Turkey’s foreign trade deficit widening 11.9pct to USD 92.9 bln in 2025. Although steelmaking capacity increased 14.6pct to 61.9 mln tons, capacity utilization fell to 61.6pct from 74.8pct in 2021, with output still below 2021 levels.

Looking ahead, TCUD warned that tighter quotas and trade measures by the European Union, alongside new sustainability requirements under the Sustainable Development Governance Agreement, will further challenge exporters. From 2026, factors such as emissions data accuracy, traceability, recyclability and energy efficiency will become critical for EU market access.

Despite these pressures, TCUD expects steel production and consumption to rise by around 7pct in 2026, supported by potential progress in EU negotiations, lower inflation and interest rates, and import controls, lifting output above 40 mln tons.

Indicator 2025 YoY December 2025 YoY (Dec)
Steel Exports (mln tons) 15.1 +12.5% 1.4 +5.5%
Export Value (USD bln) 10.2 +4.3% 0.90 +2.1%
Steel Imports (mln tons) 18.9 +8.6% 1.5 -18.6%
Import Value (USD bln) 13.1 +0.7% 1.0 -16.6%
Crude Steel Production (mln tons) 38.1 +3.3% 3.5 +18.5%
Finished Steel Consumption (mln tons) 39.3 +2.6% 3.4 +3.8%

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