The Turkish steel industry, with an annual capacity of 55-60 million tonnes (MT) and actual output around 33-35 MT, is securing its role as a key export hub for low-carbon steel, largely thanks to its electric arc furnace (EAF) model. This structure provides a natural advantage in meeting European low-emission standards and maintaining operational competitiveness.

However, the sector faces escalating challenges. Increased global competition for scrap steel, especially as the EU lists it as a strategic resource, is stressing raw material supply, though Turkish producers employ a flexible scrap-billet-slab strategy to manage this. 

Facing US tariffs and EU quotas, Turkey has diversified its annual exports (around 12-14 MT of rolled and semi-finished products).

The primary mid-term constraint is the EU's CBAM. While Turkish firms are improving carbon verification and renewable energy use, CBAM compliance requires significant funding for low-carbon technology transition, impacting medium-term strategies.