Türkiye's steel industry will shift its export strategy toward nearby and neighboring markets, prioritizing the European Union, the Balkans and Eastern Europe, as global demand weakens and protectionist measures rise, according to head of the sector's exporters' group.
Adnan Aslan, chair of the Steel Exporters Union (ÇIB), said on Tuesday that the industry has reshaped its growth strategy in response to tightening global conditions, aiming to focus less on distant markets and more on geographically closer destinations.
"In this environment, growth is only possible by targeting the right markets with a flexible strategy," Aslan said at a meeting outlining the sector's 2025 performance and 2026 outlook.
Aslan said EU countries, non-EU European markets, the Balkans, Eastern Europe and neighboring regions will be among the primary destinations in the coming period. He set a modestly higher export target of $17 billion for 2026, compared with the previous year.
The shift reflects rising logistical costs and increasing barriers such as tariffs and quotas in distant markets, while nearby regions offer advantages including faster delivery, flexible production and stronger trade ties, he added.
In 2025, Türkiye exported 7.9 million tons of steel to the EU and 3.7 million tons to other European countries, with Europe accounting for roughly 60% of total steel exports.
Aslan said uncertainty surrounding the EU's Carbon Border Adjustment Mechanism (CBAM) had weighed on demand, causing exports to start 2026 on a weaker footing. However, he expects a rebound beginning in March and April as clarity improves and delayed purchases resume.
For 2026, the sector aims to export 20 million tons of steel worth $17 billion, up from 19.4 million tons and $16.5 billion in 2025.
Aslan added that expanding production of higher-value-added steel products forms the second pillar of the industry's new growth strategy, helping Turkish producers avoid direct price competition with lower-cost suppliers such as China and India.
Uğur Dalbeler, vice chair of the ÇIB, warned that rising imports remain one of the biggest risks for the Turkish steel sector.
Despite producing around 38 million tons and consuming about 39 million tons annually, Türkiye imports nearly half of its steel consumption, Dalbeler said, calling this the sector's main structural challenge.
He noted that growing global protectionism, state-backed competition in Asia and mounting domestic cost pressures, particularly in energy and labor, have forced some producers to cut shifts and lay off workers.
Labor costs in dollar terms have tripled over the past five years, Dalbeler said, adding that employment within companies affiliated with the Metal Industrialists Association (MESS) fell by 20,000 over the past six months as of January.
On domestic demand, Dalbeler said the sector may face a subdued period as public spending, which previously supported steel consumption, has weakened and post-earthquake housing-driven demand appears to be nearing completion.
