“Transformation in the Steel Sector: Durability and Domestic Production”

Türkiye's global steel powerhouse Erdemir, with Steelorbis, continued its "Market Talks" meetings, previously held in Istanbul in collaboration in Bursa, bringing together industry representatives and business partners.

At the Erdemir “Market Talks” meeting, geopolitical developments, the general outlook of the iron and steel sector in the current conjuncture of increasing global uncertainties, structural problems, and strategic priorities for the future were discussed.

Erdemir's "Market Talks" meetings were held in Bursa with the participation of over 650 representatives from sectors with high steel consumption, primarily the automotive and related industries. The meeting in question had previously been held in Istanbul.

The opening speech was given by Serdar Başoğlu, Member of the Board of Directors and Managing Director of Erdemir-İsdemir. Başoğlu stated that the current period for the sector should be considered not only as a period of challenges but also as a multi-dimensional process testing its resilience and transformation capacity.

He drew attention to the fact that increasing geopolitical risks on a global scale, disruptions in trade flows, and disruptions in supply chains are affecting the sector in many ways, emphasizing that raw material and energy security has become a strategic priority in this new era.

“A Strong and Domestic Production Infrastructure is a Strategic Guarantee for the Industrial Ecosystem”

Addressing the risks posed by Türkiye's dependence on imports for steel raw materials, Serdar Başoğlu made the following assessments:

“The security of steel production is the guarantee of industrial production. A strong and domestic production infrastructure is a strategic guarantee not only for our sector but for the entire industrial ecosystem. As Erdemir and İsdemir, our goal is clear: We have no other option but to strengthen ourselves for our country and our sector. We have overcome many challenges over the years. We have consistently managed to be the backbone of our country. Today, we continue on our path with the same determination. When necessary, we will not only take steps but also run alongside our customers, produce solutions, and continue our contribution to the national economy.”

Serdar Başoğlu stated, “We support Turkish industry with our own production,” adding that they aim to increase supply security through mining investments, thereby reducing external dependence while increasing the domestic production rate.

In his speech, Serdar Başoğlu also touched upon the structural problems of the sector, stating that the imbalance between increasing global overcapacity and shrinking demand is increasing pressure on the sector. Başoğlu noted that aggressive export policies, in particular, are disrupting the competitive balance and creating significant impacts on both the domestic and export markets.

Underlining that the steel sector is considered not only a production area but also a strategic security element on a global scale, Serdar Başoğlu emphasized that the trade policy measures implemented in Türkiye have yielded significant gains in terms of strengthening domestic production and protecting market balances.

"Erdemir Continues to Be a Reliable Business Partner in the Automotive Sector"

Speaking at the "Current Developments in the Steel Sector and Their Reflections on the Automotive" session of Erdemir Market Talks, Kadir Şahin, Marketing and Sales Director of Erdemir-İsdemir, stated that with the widespread adoption of electric vehicles, the demand for steel in the automotive sector is undergoing a radical transformation.

Kadir Şahin said, “With electric vehicles, the expectations of the automotive sector are being reshaped. We are strengthening our leadership as a manufacturer that not only observes but also directs this transformation. We are developing lighter, higher-strength, and advanced quality steels, resolutely continuing our investments in line with our 2050 net-zero emission target, and transforming our production infrastructure in line with this vision. We are meticulously carrying out preparations for the European Union's Border Carbon Adjustment Mechanism (CBAM) and actively supporting our customers' compliance process.”

Kadir Şahin emphasized that Erdemir acts with the responsibility of being a strategic business partner in the automotive sector, and stated that thanks to its geographical location close to Europe, flexibility in production, and ability to respond quickly to demands, Erdemir will continue to be a reliable partner of the automotive sector in the future as it is today.

“We have the flexibility to quickly adapt to changing market balances”

Speaking at the Erdemir Market Talks session titled “Türkiye Flat Steel Sector Outlook for 2026 – Demand Dynamics, End-User Industries and the Impact of EU Regulations,” Tahir Zazaoğlu, Marketing Planning Director of Erdemir and İsdemir, stated that in light of recent geopolitical developments, an acceleration in defense industry production and an increase in demand for renewable energy projects are expected.

Emphasizing that a new story is written every year and that sectors are rebalanced accordingly, Tahir Zazaoğlu said that sectoral opportunities continue due to Türkiye's strong consumption potential. Zazaoğlu touched upon Erdemir's strategic role in defense industry projects, reminding that they are the main supplier in critical projects such as MÜGEM and MİLGEM.

Emphasizing that Erdemir and İsdemir have the flexibility to quickly adapt to changing market balances, Tahir Zazaoğlu stated that they continue to strengthen their effective positions in the sector.

“We are competing with countries that possess domestic raw material resources”

Zazaoğlu, drawing attention to the fact that the Turkish steel sector is competing with countries that possess domestic raw materials, stated that countries like Russia and China gain a cost advantage thanks to their domestic resources, while Türkiye, despite increasing costs in dollar terms, is competing with these countries in the same markets.

Stating that this situation creates a challenging environment for exports, Tahir Zazaoğlu emphasized that increasing production efficiency and optimizing cost management are critically important. Zazaoğlu underlined that solving import related competition problems is vital for the long term sustainability of the sector and market balances.

Zazaoğlu added that Erdemir will continue to play an active role in efforts that strengthen sectoral dialogue, as it has done to date, and will contribute to Türkiye's sustainable growth together with all its stakeholders.