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Turkey Steel Industry: Facilities, Resources & Analysis

TurkeyTurkey Steel Profile & Overview

Turkey is the world's eighth-largest steel producer and the largest in Europe by output — a position built on a uniquely scrap-intensive, export-oriented EAF model and an unrivalled position as the globe's biggest seaborne scrap importer. Turkish long product exports — rebar, wire rod, and sections — reach over 100 countries, making Turkey the world's leading exporter of steel long products. The industry is concentrated on the Black Sea coast and in the Marmara region, is almost entirely privately owned, and operates in a highly competitive, trade-exposed environment. This page provides an independent overview covering facilities, logistics, scrap flows, ownership, resources, distribution, and the structural issues shaping Turkey's steel future.

Analysis by Dr Andrzej M Kotas, independent steel industry advisor with 36 years of steel sector experience across 48 countries.

~37 Mt
Crude steel output 2024
~50 Mt
Installed capacity
~17 Mt
Finished steel exports p.a.
~20 Mt
Ferrous scrap imports p.a.

🏭 Overview of the Turkish Steel Industry

Role of Steel in the Turkish Economy

Steel occupies a central position in Turkey's industrial economy — as both a major manufacturing sector in its own right and the essential material input for construction, automotive, mechanical engineering, and infrastructure. Turkey's steel sector directly employs over 40,000 people, with several hundred thousand more in the wider supply chain. The industry generated export revenues of approximately US$12–14bn a year in recent years, making it one of Turkey's leading export earners alongside textiles and automotive.[1]

Turkey's steel model is distinctive in global terms. Unlike many top-ten producers, Turkey has almost no domestic iron ore or coking coal — its production is built almost entirely on scrap-fed EAF technology, making it the world's largest single buyer of seaborne ferrous scrap. The Turkish scrap import price — specifically the Iskenderun deep-sea import price — functions as the global seaborne scrap benchmark, referenced in contracts from the US to South Korea.

Production Output & Structure

Turkey produced approximately 37 Mt of crude steel in 2024, placing it 8th globally and 1st in Europe. Installed capacity is estimated at around 50 Mt/yr, with utilisation typically running at 65–75% — reflecting the cyclical and export-driven nature of the industry. Around 80% of output is long products (rebar, wire rod, sections, rail); the remaining 20% is flat products (HRC, cold rolled, coated), produced primarily by the Erdemir group's integrated blast furnace–basic oxygen furnace operations on the Black Sea coast.[2]

Turkey is simultaneously the world's leading exporter of steel long products, dispatching approximately 17 Mt of finished steel per year to over 100 countries, with the Middle East, North Africa, the EU, and the US among the principal destinations. This export orientation makes Turkish steel uniquely exposed to global trade policy — US Section 232 tariffs, EU safeguard measures, and anti-dumping investigations affect the sector continuously.

📊 Market

Consumption

Apparent steel use in Turkey ran at approximately 38 Mt in 2024, with construction accounting for around 55–60% of demand. Automotive, mechanical engineering, and energy infrastructure are secondary demand sectors. Turkish steel demand is strongly correlated with construction activity, which is in turn linked to government housing programmes, earthquake reconstruction spending (post-February 2023 Kahramanmaraş earthquakes), and private real estate development. The domestic market is intensely price-competitive; Turkish producers face import competition from Asia and the EU even in their home market.[3]

Trade

Turkey's export-to-production ratio (~65%) is among the highest of any major steel-producing country. Key export markets for long products include the US (subject to a 25% Section 232 tariff, with a quota), the EU (subject to safeguard quota), the Middle East, North Africa, and Sub-Saharan Africa. Turkey imports significant volumes of flat products from the EU, Russia, and Ukraine for its automotive and manufacturing sectors. The country also imports iron ore for Erdemir's blast furnace operations. Turkish Steel Exporters' Association (ÇİB) data shows flat products account for the majority of steel import value.[4]

🏗️ Main Plants & Facilities

Turkey's steelmaking base spans the Black Sea coast (Zonguldak, Karabük, Ereğli), the Gulf of İskenderun (İskenderun, Payas), the Marmara region (Kocaeli, Çerkezköy), and İzmir on the Aegean. The industry is predominantly EAF-based, but Turkey operates three integrated BF–BOF complexes: Erdemir at Ereğli and İsdemir at İskenderun (both within the Oyak/Erdemir Group), and Kardemir at Karabük.

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PlantLocationProcessCapacity (Mt/yr)Main ProductsOwner
Ereğli (Erdemir)Turkey's flagship integrated flat products complex; BF–BOF route; iron ore imported via dedicated port Ereğli, Black SeaBF–BOF~4.5 HRC, cold rolled, galvanised, tinplateErdemir (Oyak Group)
İskenderun (İsdemir)Erdemir Group's second integrated site; BF–BOF and EAF; flat and long products İskenderun, MediterraneanBF–BOF / EAF~4.5 HRC, rebar, sections, wire rodİsdemir (Oyak / Erdemir Group)
Karabük (Kardemir)Formerly state-owned; privatised 1994; sole independent integrated BF producer; long products focus Karabük, Black Sea regionBF–BOF / EAF~3.5 Rail, sections, rebar, wire rodKardemir (employee/public shareholders)
Çolakoglu (Gebze)Major EAF producer in Marmara region; integrated rolling mills; significant exporter Gebze, KocaeliEAF~3.5 Rebar, wire rod, sections, HRCÇolakoglu Metalurji
İçdaş (Biga)Large EAF and rolling complex; Çanakkale province; rebar, wire rod and coil Biga, ÇanakkaleEAF~4.0 Rebar, wire rod, HRCİçdaş Steel
Tosyalı Holding (İskenderun / Sarıseki)Major EAF flat steel complex; Primetals Quantum Furnace technology; HBI-capable; significant export capacity İskenderun, MediterraneanEAF / HBI-capable~5.0 Rebar, wire rod, sections, HRCTosyalı Holding
Habas, Diler, Çemtaş & othersMultiple mid-size EAF producers across Marmara, Aegean, and Black Sea regions VariousEAF~15 (combined) Rebar, billets, wire rod, sectionsVarious private Turkish groups

Capacities are nominal crude steel or liquid steel equivalent. Sources: World Steel Association, Turkish Steel Producers Association (TÇÜD), Global Energy Monitor. Data correct to Q1 2026. For full plant-level capacity data see our Steel Plant Capacity Database.

Downstream & Processing Facilities — Beyond primary steelmaking, Turkey has an extensive downstream sector. Cold rolling, galvanising, organic coating, and tinplate lines — primarily in the Kocaeli, Bursa, and İzmir industrial zones — process Erdemir and imported coil for the automotive, white goods, packaging, and construction sectors. Two joint ventures merit specific mention: Borçelik (Borusan Holding / ArcelorMittal JV, Bursa) is Turkey's largest galvanised flat steel producer, supplying the automotive and white goods industries; and Tosyalı Toyo Çelik A.Ş. (Tosyalı Holding / Toyo Kohan JV, operational since 2017) produces tin-coated sheet for the packaging sector. Wire drawing, mesh manufacturing, and section fabrication plants serve the construction and mechanical engineering industries. Turkey's downstream processing sector is one of the most developed in the MENA/CIS region.

📐 Planned Investments

Turkish steel investment in the 2024–2030 period is focused on three themes: capacity expansion by major private groups, green steel transition (DRI–hydrogen routes), and decarbonisation driven by EU CBAM alignment pressure.

Tosyalı — DRI & Green Steel

Investor: Tosyalı Holding  |  Value: est. US$1bn+
Status: Tosyalı has invested significantly in advanced EAF capacity at İskenderun (the Sarıseki flat steel plant, using Primetals Quantum Furnace technology and able to process imported HBI alongside scrap), reducing scrap dependency. Tosyalı's principal DRI capacity is located at its Tosyalı Algérie complex in Algeria. The group is advancing plans for hydrogen-ready DRI capacity at future sites, positioning itself as a green steel pioneer.[5]

ActiveDRI / HBIGreen steel

Erdemir / İsdemir Upgrades

Investor: Oyak Group / Erdemir
Status: Ongoing capital investment in downstream coating lines, continuous caster upgrades, and environmental compliance at both Ereğli and İskenderun. The group has begun feasibility studies for potential EAF supplement or DRI integration to reduce blast furnace carbon intensity ahead of EU CBAM implementation.[6]

OngoingFlat productsCBAM response

Çolakoglu Flat Products

Investor: Çolakoglu Metalurji
Status: Çolakoglu has expanded flat product capacity at its Gebze complex, including new HRC and cold rolling lines, targeting the growing domestic automotive and manufacturing supply chain. The group is among the most capital-active in the Turkish private steel sector.

ActiveFlat products

Earthquake Reconstruction — Demand Stimulus

Driver: Government reconstruction programme
Status: The February 2023 Kahramanmaraş earthquakes destroyed an estimated 500,000+ buildings across 11 provinces. The reconstruction programme — expected to run through 2027–2028 — represents a multi-billion-dollar stimulus for rebar and section demand, partially offsetting broader domestic demand softness.[3]

Demand driverLong products
Investment context: Turkish lira depreciation raises the TRY cost of imported capex equipment, dampening investment appetite despite strong revenue generation in USD/EUR from exports. The EU CBAM, phasing in from 2026, presents both a threat (carbon levy on EU-bound exports) and an investment catalyst (DRI–EAF transition to lower carbon intensity).
Solar power investment: A significant wave of captive solar power investment is under way across the Turkish steel sector, driven by high grid electricity costs and the need to reduce carbon intensity ahead of EU CBAM. Companies with active solar projects include Çemtaş, Tosyalı Holding, the Erdemir Group (including Erdemir Madencilik), İzmir Demir Çelik, Kaptan Demir Çelik, Noksel Çelik Boru, Tezcan Galvanis, Yeşilyurt Demir Çelik, Alter Iron & Steel, Diler Holding, Ekinciler, Işık Steel, Yazıcı Iron and Steel, and others. Full investment details are available in the SteelOnTheNet Capital Investment Database.

⚓ Logistics & Ports

Turkey's steel logistics revolve around two dominant commodity flows: inbound ferrous scrap imports (the world's largest seaborne scrap import programme) and outbound finished steel exports to global markets. Turkey's coastal geography — with major steel clusters on the Black Sea, the Marmara Sea, and the Mediterranean Gulf of İskenderun — means that dedicated steelmaking ports are integral to each major cluster's supply chain.

İskenderun & Payas Eastern Mediterranean

The Gulf of İskenderun is Turkey's most important steel port cluster. The İskenderun and Payas terminals handle the bulk of Turkey's seaborne scrap imports — the Istanbul Maden ve Metaller İhracatçı Birlikleri (IMMIB) price reference is set here. İsdemir and Tosyalı both have dedicated quays. The Iskenderun scrap deep-sea price is the global seaborne benchmark.

Ereğli Port Black Sea

Erdemir's dedicated deep-water port at Ereğli handles iron ore imports (principally from Brazil and Ukraine), coking coal, and finished flat product exports. Capable of handling Capesize vessels. Critical to Erdemir's integrated supply chain and one of Turkey's most modern industrial port facilities.

Dilovası / Gebze / Derince Marmara Sea

The Kocaeli industrial port cluster serves the major Marmara-region EAF producers — Çolakoglu, Habas, and others. Scrap inflows via Handymax and Panamax bulk carriers; finished product exports (rebar, sections, coil) via general cargo and bulk carriers to EU and Mediterranean markets.

Aliağa (İzmir) Aegean

Aliağa is Turkey's principal ship-breaking centre — an important secondary source of heavy melting scrap — and also handles steel import and export flows for Aegean-region producers and downstream processors. The port serves as a key logistics node for the İzmir industrial cluster.

Inland logistics: Rail freight is used on key corridors — Ereğli to inland distribution, Karabük to Marmara ports — but road haulage dominates the final mile and shorter hauls. Turkey's motorway network provides good connectivity between the major steelmaking clusters and consumption centres in Istanbul, Ankara, and the Aegean coast. Barge transport on the Bosphorus plays a minor role.

🏢 Ownership

"Turkey's steel industry is one of the few globally where the dominant player is a pension fund — Oyak, the armed forces' mutual assistance association — rather than a state enterprise or listed conglomerate."
Turkish Steel Producers Association (TÇÜD) | Ankara

Turkey's steel industry is almost entirely privately owned. The state plays no direct operational role in steelmaking; the sector is dominated by large private Turkish industrial groups and, uniquely, by Oyak — the Turkish Armed Forces Pension Fund — which owns the Erdemir and İsdemir integrated complexes, Turkey's two largest and most technologically advanced plants.

Erdemir / Oyak Group🇹🇷 Market Leader
The largest Turkish steel group by revenue and flat product capacity. Erdemir (Ereğli Demir ve Çelik) and its subsidiary İsdemir together produce ~9 Mt/yr of crude steel. Both are listed on Borsa Istanbul; Oyak (Turkish Armed Forces Pension Fund) holds a majority stake. Erdemir is Turkey's sole significant producer of HRC, cold rolled, galvanised, and tinplate — strategic products for the automotive and packaging sectors.[2]
Kardemir🇹🇷 Active
Privatised from state ownership in 1994 through a worker/public buyout — Kardemir remains Turkey's only independently integrated blast furnace producer outside the Oyak/Erdemir orbit. Listed on Borsa Istanbul. Specialises in rail, sections, and rebar from its Karabük complex. Kardemir is the primary domestic supplier of rail to TCDD for Turkey's expanding rail infrastructure programme.[1]
Çolakoglu Metalurji🇹🇷 Active
One of Turkey's most significant privately owned EAF groups, based in Gebze (Kocaeli). Produces rebar, wire rod, sections, and increasingly flat products from its Marmara complex. Çolakoglu is a significant exporter to the EU and Middle East, and has been among the most active investors in downstream flat product processing in Turkey's private sector.
İçdaş Steel🇹🇷 Active
A major EAF producer based in Biga (Çanakkale province), with approximately 4 Mt/yr capacity — one of the largest single EAF sites in Europe. Produces rebar, wire rod, and increasingly HRC. İçdaş is a significant exporter and has developed its own dedicated port infrastructure at Biga. The group has grown rapidly through organic investment.[5]
Tosyalı Holding🇹🇷 Expanding
One of Turkey's fastest-growing steel groups and now its second-largest producer by output (~9 Mt/yr, 2024), with major EAF and HBI operations at İskenderun and international expansion into Algeria (Tosyalı Algérie — one of Africa's largest steel plants). Tosyalı has invested heavily in DRI/HBI technology to reduce scrap dependency, and is positioning itself as a green steel leader in the MENA region.[5]
Other Private Groups🇹🇷 Various
Turkey's steel industry includes a large number of significant private EAF operators: Habas (Marmara), Diler (Black Sea coast), Çemtaş (Bursa), MMK Metalurji (Iskenderun — partial Russian ownership), and many others. The private sector accounts for approximately 75% of Turkey's crude steel output, the remainder split between Oyak and Kardemir.

🌐 Overseas & Cross-Border Operations

Two distinct concepts apply throughout this page: installed-in-country capacity (all steelmaking located within this country, regardless of who owns it) and nationally-owned capacity (steelmaking owned by this country's producers, wherever located in the world). Country-level output and installed capacity figures use the installed-in-country definition. Producer-level figures refer to the operations relevant to this country unless explicitly stated otherwise. The table below summarises significant cross-border ownership interests that bridge the two concepts.

Producer Overseas Entity Location Scale / Stake Notes
🇹🇷 Tosyalı Holding Tosyalı Algérie Algeria ~5 Mt/yr EAF + DRI complex (Bethioua, Oran) One of Africa's largest single steel plants; exports long products to European and African markets; part of Tosyalı's MENA growth strategy
🇹🇷 Tosyalı Holding MENA distribution network Libya, MENA Trading and distribution offices Downstream sales network supporting long product export flows from both Turkish and Algerian operations
🇹🇷 Oyak / Erdemir MMK Metalurji (Iskenderun) Turkey (Russian-origin JV) Oyak consolidated ownership; ~2.5 Mt/yr EAF Originally a JV with Russia's Magnitogorsk (MMK); Oyak consolidated control following post-2022 sanctions context
🇹🇷 Oyak / Erdemir Erdemir Romania SRL Romania ~108 kt/yr rolling and processing Small electrical steel rolling and processing facility; acquired by İsdemir; 80% of output exported to European markets. Not a primary steelmaking plant.
Policy note: Turkey's government has maintained a broadly supportive stance towards the steel industry — protecting it through import safeguard measures, supporting infrastructure-led demand, and facilitating port and logistics investment. No strategic nationalisation risk exists; the direction of travel is continued private sector consolidation and internationalisation.

⚙️ Resources: Raw Materials & Energy

🪨 Raw Materials

Turkey has no significant domestic iron ore or coking coal resources suitable for integrated steelmaking at scale. Erdemir and İsdemir import iron ore — principally from Brazil and Ukraine — and coking coal from Australia, the US, and Canada. The EAF sector is entirely dependent on imported scrap, making Turkey the world's single largest seaborne scrap importer at approximately 20 Mt/yr.[7]

A growing number of Turkish EAF producers are supplementing or partially substituting scrap with imported HBI (from the Gulf, Iran, Venezuela) and domestically produced DRI (Çolakoglu DRI projects), reducing scrap price exposure and improving melt quality for higher-grade products. Tosyalı's Sarıseki flat steel plant at İskenderun is designed to use imported HBI alongside scrap; the group's DRI production is based in Algeria.

⚡ Energy

Energy costs are a major competitive factor. Turkish industrial electricity prices are high relative to regional competitors — particularly compared to gas-advantaged producers in the Gulf or Iran. EAF electricity costs are partially offset by Turkey's growing renewable energy base (wind and hydro), and several producers have invested in captive power generation and energy management systems.[8]

Natural gas — used for reheating furnaces, DRI processes, and utilities — is imported primarily from Russia (via TürkAkım / Blue Stream pipelines), Azerbaijan (TANAP), and via LNG terminals. Gas prices are set by BOTAŞ (state energy company); industrial tariffs have risen significantly with global energy market disruption since 2022. The TürkAkım pipeline has given Turkey a degree of gas transit leverage, but supply security remains a strategic risk.

♻️ Scrap

Scrap is the lifeblood of Turkish steelmaking. Turkey's near-total dependence on imported ferrous scrap for its vast EAF sector makes it the world's most important single buyer of seaborne scrap — and the İskenderun deep-sea import price is consequently the global benchmark against which all seaborne scrap transactions are priced. Understanding Turkish scrap dynamics is essential to understanding global scrap markets.

Imports

Turkey imports approximately 20 Mt of ferrous scrap per year (20.1 Mt in 2024 per BIR; 21.6 Mt per WorldSteel) — the largest seaborne scrap import programme in the world by a significant margin. Primary suppliers are the US (approximately 4.5 Mt in 2024, ~22% of imports), EU member states led by the Netherlands (~2.8 Mt), UK (~2.2 Mt), Belgium, and Germany, and the CIS countries. The US East Coast shredded price (HMS 1&2 80:20) and the UK deep-sea export price are closely tracked benchmarks.[7]

Domestic Collection

Turkey generates approximately 8–10 Mt of domestic ferrous scrap annually from demolition, manufacturing, and end-of-life vehicles. This covers less than half of EAF demand. The domestic collection sector is large and partly informal; Aliağa ship-breaking provides a significant contribution of heavy melting scrap. Istanbul and other major cities are important sources of demolition scrap as urban renewal programmes proceed.

Exports & Re-exports

Turkey is not a net scrap exporter — it is structurally scrap-hungry. However, Turkish traders occasionally re-export small volumes to neighbouring markets (Egypt, Libya) when grade mismatches or logistics opportunities arise. Turkey also processes and re-exports semi-finished billets to regional markets.

Price Benchmark

The Turkish deep-sea scrap import price — published by Fastmarkets, Platts, and SteelOrbis — is the global seaborne benchmark. When Turkish mills buy or pause buying, the global scrap price moves. Turkish EAF margins are therefore a function of the spread between the scrap import price (USD/t CIF Turkey) and the rebar export price (USD/t FOB Turkey).

Scrap Sourcing & Trading

International Scrap Traders

Turkey's scrap import market is served by a combination of major international commodity trading houses (Glencore, Trafigura, and specialist scrap traders), large European and US scrap exporters (EMR, Sims, Schnitzer), and Turkish importers and brokers. The market is highly liquid and price-transparent; Turkish mills typically purchase on short-term spot or 30-day contracts.

Spot marketUSD-denominatedGlobal benchmark

HBI / DRI Supplement

A growing number of Turkish producers import HBI from Iran, the UAE (Emirates Steel), Venezuela (Briqven), and Trinidad (Caribbean Ispat) to supplement scrap charge. Tosyalı's İskenderun Sarıseki plant is designed to use imported HBI alongside scrap; the group's principal DRI capacity is at Tosyalı Algérie in Algeria. HBI/DRI provides better melt chemistry for higher-specification long and flat products.

HBI importsDRI domestic

Turkish mills' scrap purchasing patterns — volumes, timing, grade preferences — are closely monitored by global scrap markets as a leading indicator of seaborne scrap prices.[7]

🚚 Distribution

Steel distribution in Turkey operates through a combination of mill-direct sales, a well-developed independent steel trading and stockholding sector, and a large downstream processing industry. Turkey's domestic distribution infrastructure is among the most developed in the MENA and CIS region — reflecting the maturity of its construction and manufacturing supply chains.

Mill-Direct Distribution

All major Turkish producers — Erdemir, İsdemir, Kardemir, Çolakoglu, Tosyalı — maintain their own direct sales teams and regional depot networks for key customer segments: large construction contractors, automotive OEM supply chains, and major fabricators. Erdemir's distribution network is the most developed, serving automotive and packaging customers across Turkey and export markets.

Flat & long productsNational coverage

Independent Steel Merchants

A large sector of independent steel traders and stockholders — concentrated in Istanbul's Perpa steel trading complex and in industrial cities (Bursa, İzmir, Ankara, Adana) — serves the SME construction, fabrication, and mechanical engineering sectors. These merchants provide credit, inventory-holding, and processing functions (cutting, bending) not offered directly by the mills at small volume.

SME marketCredit-based

Export Trading

A significant proportion of Turkish steel is sold via export trading companies — both Turkish-owned export houses and the trading arms of international steel groups. The Turkish Steel Exporters' Association (ÇİB) coordinates market access, trade policy representation, and export data collection. Turkish rebar and wire rod are sold FOB Turkish port; buyers arrange freight to over 100 destination countries.

Export-orientedGlobal reach

The Turkish Steel Producers Association (TÇÜD) represents producers on industry policy, statistics, and trade matters. The Steel Service Centre sector is less developed than in Western Europe — most value-added processing (slitting, blanking, profiling) is carried out by user industries in-house or by small independent processors.

⚠️ Issues

Trade Barriers & Protectionism

Turkey's export-oriented steel sector is perpetually navigating trade restrictions. US Section 232 tariffs (25%) apply to Turkish steel, with a quota arrangement negotiated for rebar and wire rod. The EU's steel safeguard regime caps Turkish flat product and long product exports to the EU via quotas. Anti-dumping investigations in multiple markets (India, Southeast Asia, the Gulf) periodically restrict market access.[4]

Each new market restriction forces a geographical reorientation of Turkish export flows — the flexibility and reach of the Turkish trading networks are a key competitive asset in managing this.

See also: Trump Steel Tariffs: Global Impact Analysis | The Overcapacity Trap: Barriers to Entry and Exit in Steel

Currency & Inflation

Turkish lira depreciation has been a chronic structural feature of the industry's economics since 2018. Since most raw materials (scrap, iron ore, coal, HBI, alloys, electrodes) are priced in USD, and most export revenues are in USD/EUR, the TRY/USD rate primarily affects the domestic cost base (labour, local energy, logistics) and the TRY value of capex.[3]

High domestic inflation — exceeding 70% at peak in 2022–2023 — has eroded real domestic purchasing power, suppressing domestic demand while keeping export competitiveness intact (since export prices are set in hard currency).

EU CBAM — Carbon Border Adjustment

The EU's CBAM, phasing in from 2026, directly threatens Turkish steel exports to the EU — Turkey's second-largest export market. Turkish EAF steel, while inherently lower-carbon than BF–BOF, is still significantly more carbon-intensive than EU-produced EAF steel due to Turkey's coal-heavy electricity grid. The levy could add US$20–50 per tonne to the cost of Turkish steel in the EU market.[9]

Turkey is considering alignment of its own ETS with the EU scheme — which would exempt Turkish exports from CBAM — but implementation remains politically and technically complex.

See also: Two Worlds: Carbon Pricing Splits the Steel Industry | EU Steel Action Plan 2025: The Crisis Response

Scrap Price Volatility

Near-total dependence on imported scrap exposes the Turkish steel industry to commodity price volatility and supply-side shocks. When global scrap prices spike — driven by competing demand from other importing nations, shipping disruptions, or export restriction in key supplying countries — Turkish EAF margins compress sharply. The scrap/rebar spread is the single most important profitability metric for Turkish long product producers.[7]

The move towards DRI/HBI integration by leading producers is partly a strategic response to scrap price risk, providing charge mix flexibility.

Energy Security

Turkey's dependence on Russian gas (via TürkAkım) for industrial and heating supply creates geopolitical exposure. The 2022 Ukraine conflict and subsequent European energy crisis tested Turkey's position as a transit state and gas hub, while also raising LNG import costs for alternative supply. Electricity grid reliability and the pace of renewable energy buildout (wind in the Aegean and Marmara, solar in Central and Southeast Anatolia) are critical for long-term EAF competitiveness.[8]

Overcapacity & Market Cyclicality

Like many major steel producers, Turkey has accumulated excess capacity through boom-period investment cycles. At ~50 Mt installed vs ~37 Mt output, utilisation below 75% is a persistent structural feature. Domestic demand is strongly cyclical — construction booms and busts driven by interest rates, government stimulus, and now earthquake reconstruction — creating earnings volatility even for the largest operators.

📚 Sources & Further Reading

Authoritative sources underpinning the data and analysis on this page.

World Steel Association

Turkish Steel Producers Association (TÇÜD)

  • Annual steel statistics — production, trade, capacity
  • Industry position papers and trade policy submissions

Turkish Steel Exporters' Association (ÇİB)

  • Monthly export statistics by product and destination
  • Trade barrier monitoring and market access reports

SteelOrbis

  • Turkish steel price benchmarks (scrap, rebar, HRC)
  • Market news and company reports — Turkey and MENA

Global Energy Monitor

  • Global Steel Plant Tracker — Turkey plant-level data

SteelOnTheNet

EBRD

SteelOnTheNet Insights

References

  1. Turkish Steel Producers Association (TÇÜD) (2025): Annual Statistics Report 2024 — production, trade, employment
  2. Erdemir Group (2025): Annual Report 2024 — capacity, output, financial results
  3. World Bank / IMF: Turkey Economic Monitor — construction sector demand, lira depreciation impact on industry
  4. Turkish Steel Exporters' Association (ÇİB) (2025): Export statistics 2024 — volumes, destinations, product breakdown
  5. Tosyalı Holding (2025): Corporate reports — DRI/HBI capacity, Algeria operations, green steel plans
  6. Erdemir Sustainability Report (2024): CBAM readiness assessment and decarbonisation roadmap
  7. Fastmarkets (2025): Ferrous scrap market report — Turkey import volumes 2024; global scrap benchmark pricing
  8. Republic of Turkey Ministry of Energy and Natural Resources: Industrial gas and electricity tariff data; renewable energy capacity statistics
  9. European Commission (2026): Carbon Border Adjustment Mechanism (CBAM) — implementation status and third-country impact assessment
  10. Global Energy Monitor (2025): Global Steel Plant Tracker — Turkey plant-level capacity and process data

Dr Andrzej M Kotas
Page Author
Dr Andrzej M Kotas
PhD, MBA, and MCI Managing Director with 36 years of steel sector experience, specialising in strategy consulting, privatisation planning, and industry restructuring for the European Commission, governments, and international development banks. View Credentials →

How to Cite This Page

Kotas, A.M. (2026) 'Turkey Steel Industry: Facilities, Resources & Analysis', SteelOnTheNet. Available at: https://www.steelonthenet.com/resources/countries/turkey.html (Accessed: 21 October 2026).

Author credentials: ORCID ORCID iD

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