Source: Mysteel
Turkey's steel industry is facing mounting pressure as new data reveals that the country's steel capacity utilization rate has fallen approximately 12 percentage points below the global average, signaling significant underutilization across its production base. The figures highlight the structural challenges confronting one of the world's major steel-producing nations amid a difficult global demand environment.
The utilization gap reflects a combination of weak domestic demand, elevated energy costs, and competitive pressures from low-cost imports. Turkish steelmakers have struggled to maintain output levels as inflation, high borrowing costs, and sluggish construction activity have dampened home-market consumption of long products and flat steel alike.
On the export front, the situation is equally challenging. Turkish steel exports to Europe dropped 23 percent year-on-year, a decline that underscores the erosion of Turkey's traditional export market. European buyers have been diversifying their supply chains, and trade defense measures in the EU have made it more difficult for Turkish producers to compete on price. The weakening euro against the Turkish lira in recent months has further eroded the cost advantage that Turkish exporters once enjoyed.
Despite these headwinds, Turkish wire rod exports bucked the broader trend, with growth accelerating to 16.1 percent in the first nine months of 2026. This suggests that certain niche product segments remain competitive even as the overall industry struggles. Turkish metal producers raised domestic sales prices by 1.85 percent in October compared with September, attempting to pass through higher input costs to local customers.
For international steel market participants, Turkey's production and trade data serve as a barometer for broader trends in Mediterranean and European steel markets, where overcapacity, energy cost disparities, and shifting trade patterns continue to reshape competitive dynamics.
