With the support of Erdemir, one of the OYAK Mining and Metallurgy companies, the second SteelOrbis Market Talks event was held in Istanbul, where participants discussed the fundamental challenges facing the sector and shared predictions for the future of the Turkish steel industry in light of recent global developments.
The Market Talks, with Erdemir, Türkiye's leading integrated steel producer, as the main sponsor, took place in Istanbul. The event, which brought together over 700 participants, provided an opportunity to hear the expectations and assessments of leading representatives from the steel sector and offered opportunities to establish new business connections.
Sercan Büyükbayram, Chief Sales and Marketing Officer of OYAK Mining and Metallurgy, began his speech by stating that both the global and Turkish economies, as well as the steel sector, are going through difficult times. He then provided an overview of Erdemir’s activities and the state of the Turkish steel industry. Büyükbayram noted that over the past five years, the sector had experienced high volatility, followed by a slowdown in production post-pandemic, emphasizing that inflation control and interest rate decisions were being closely monitored by the industry. Pointing out their efforts to find solutions to supply chain disruptions caused by unexpected geopolitical developments in the region, Büyükbayram said that the slowdown in the Chinese economy and its consequences were at the forefront of everyone’s agenda. As a producer under the OYAK Mining and Metallurgy umbrella, he reported that, despite challenging market conditions, they had invested approximately $1 billion annually over the past three years. He emphasized that while producers in competing countries have received grants from their governments, Turkish steel producers have made their investments without any state support. Büyükbayram said, “In the first four months of this year, flat steel consumption decreased by 12 percent, while imports reached 50 percent of consumption. These figures, in our opinion, mean a loss for local production. Although the decline in production or the increase in imports may seem like just a number today, the losses it will cause tomorrow may be too severe to be expressed in monetary terms.”
Emphasizing the need to ensure fair competition, Büyükbayram stated that they object to the risk of Turkish industry becoming increasingly dependent on imports.
Recent developments in raw material markets were discussed
In the first session of the event, Şevket Selim Yılmaz, Chief Procurement Officer of OYAK Mining and Metallurgy, presented a comprehensive analysis, stating that global developments between 2020 and 2025 must be remembered in order to understand the current market conditions. Yılmaz continued: “The wars that began in neighboring regions in 2022 affected the supply chain, and this impact extended as far as the Suez Canal. In these market conditions, where climate change has become part of crisis management and trade wars continue to create uncertainty, accurate market readings are of great importance.”
Emphasizing that Brazil and Australia are the main suppliers in the 2.3 billion mt ore market and that China is the main consumer, Yılmaz noted that supply has increased and that this increase has been reflected in prices. He also pointed out that rising production and logistics costs are putting downward pressure on prices.
In the second session of the event, Tolga Koçer, Marketing and Sales Director of Distribution Channels and Long Products of OYAK Mining and Metallurgy, assessed the latest developments and expectations in steel markets. He stated that despite the decline in flat steel consumption in Türkiye in the first four months of the year, imports remained high. Koçer explained that high financing costs had shifted purchasing behavior toward smaller, more frequent, and shorter-term orders, which in turn made operational management more difficult for integrated facilities. Koçer emphasized that the Turkish steel market is under pressure from the low pricing strategies of Asian countries and that Russia, advantaged by its own resources, is also trying to enter the Turkish market. He added, “Pressure is continuing to increase due to China’s new capacity investments in Southeast Asian countries, which is the main factor driving pressure in the steel market. Despite all the challenges, OYAK Mining and Metallurgy companies account for 23% of Türkiye’s total crude steel production.”
Emphasizing their involvement in prestigious projects such as YEKA wind energy, national shipbuilding, and national submarine projects, Koçer continued, “At the same time, we have continued our green transformation activities and successfully completed hydrogen tests. We are evaluating the transition to hydrogen-based production for the coming period.”
China’s share continues to grow
Following Koçer, OYAK Mining and Metallurgy Export Director Meltem Alim Atmaca gave a presentation in which she stated that there is unprecedented uncertainty in the current markets and emphasized that even the World Steel Association has been unable to make reliable forecasts for this year due to deep uncertainty. Atmaca highlighted that, according to the IMF’s latest 10-year data, global growth rates have fallen below 2.79% for the first time since the crisis years. She stated, “The gap between the manufacturing purchasing managers’ index and the services purchasing managers’ index, two important indicators of global growth, has been widening for some time, with the manufacturing index showing a negative divergence. Despite challenges such as China increasing its share of steel exports from 23% to 38% and creating price pressure, Türkiye’s flat steel sector achieved exports of 5.7 million metric tons. Erdemir and İsdemir account for 20% of this export volume. In hot-rolled products, this figure is approximately 30%. Even under impossible conditions, we have the potential to find customers and make sales in every region. However, our priority is our regular customers in the domestic market.”
The first 15 award-winning works from this year’s 8th Steel and Life Sculpture Competition, organized by Erdemir, were also exhibited in the event’s foyer. The sculptures, created by undergraduate and graduate students studying sculpture, using Erdemir steel, attracted significant interest from participants.
