Steel Sector in Turkey: Conflict Continues in the Sector, New Foreign Investor to Join the Game
As debates over additional tariffs and anti-dumping investigations in the stainless steel industry continue into their second year, a new raw material producer is reportedly preparing to invest in Turkey. A representative from the Stainless Steel Industrialists and Businesspeople Association stated that while a current domestic producer claims to be incurring losses, a Chinese company has begun preparations to enter the market with a $257 million investment in Yalova.
While anti-dumping discussions remain intense, a third company is set to join existing producers in cold-rolled stainless steel production in Turkey. The Chinese firm plans to establish a factory in Yalova. At a recent press conference, the association representative shared updates on the sector, including this investment and goals for 2025. Representing over 150 members in a $5 billion industry, the association noted that Turkey is the ninth-largest stainless steel consumer globally. Following a nearly 20% contraction in 2023, the sector rebounded by 16% last year. Imports rose from 607,000 tons to 703,000 tons, though still below the 2021 level of 745,000 tons. Prices were stable in early 2024, but later declines eroded earlier profits, leading to a year with very low margins.
“If Anti-Dumping Duties Are Imposed, Prices Will Soar”
According to the association, the biggest recent issues are additional customs duties and an ongoing anti-dumping investigation. The import duty on stainless steel was raised from 8% to 12%, significantly affecting all sectors that rely on stainless steel by increasing prices and weakening export competitiveness. An anti-dumping investigation into cold-rolled flat stainless steel products is underway, with on-site inspections being conducted in China and Indonesia. The investigation is expected to conclude by August or September. The association warned that if anti-dumping duties are imposed, industries such as kitchenware, white goods, automotive parts, and machinery manufacturing could face major price increases, production slowdowns, and job losses.
“If There Are Losses, Why Is a New Investor Coming?”
The association criticized the producer who requested the anti-dumping investigation, stating that this company does not conduct melting operations but instead imports hot-rolled products and processes them into cold-rolled products—thereby generating limited added value. While this company claims to be operating at a loss, a major new foreign investor is entering the market.
The new investor is a leading Chinese producer of cold-rolled stainless steel used in appliances, vehicles, and medical equipment. Along with its partners, the company has committed to a $257 million investment to build a plant in Turkey. It currently operates five production bases in China, two in Vietnam, and plans another in Thailand. The Turkish facility, to be located in the Yalova Machinery Specialization Organized Industrial Zone, will have a planned capacity of 400,000 tons of cold-rolled steel coils and strips annually. The investment is aimed at leveraging Turkey’s strategic geographic position and favorable trade access to Europe, helping the company expand globally and strengthen its brand.
High Interest Rates Hindering Production and Investment
The association also pointed to high interest rates as a major barrier to production and economic growth in Turkey. Access to capital is reportedly extremely limited, with a rise in bounced checks and near-impossible loan conditions. Industry leaders are calling for government support and financial solutions to revive investment interest.
Commenting on recent statements by a government minister regarding tax enforcement, the association representative criticized the plan to place tax officers at industrial zone entrances and exits, suggesting it is outdated in an era focused on artificial intelligence and digitalization. They interpreted the move more as a symbolic warning against informal economic activity.
