Steel consumption has suffered globally in recent years due to slowing end-user sector activity amid high interest rates in the EU and US, geopolitical turmoil and fierce competition from China, panellists noted at Kallanish Global Flat Steel 2025 in Istanbul last week.
“I don’t think that trade barriers will force the end users of steel to relocate from one region to other places, like many people suggest,” said Eurofer director of economic and market analysts Alessandro Sciamarelli. “The process of relocation is very complex, which takes time and big investments. One of the main goals of the Trump administration in the US is to relocate businesses to the US, but it remains to be seen if this is going to be successful and I’m a bit sceptical.”
“In Europe, we need strong industries through all the supply chains, which includes steel consumers like the automotive industry, construction and others,” he added.
According to him, no real improvement in steel demand is in sight, due to US tariff-related trade disruption. “High production costs and global uncertainty – geopolitical and trade-related – continue to weigh on the sector. Import pressure also remains high, combined with expanding global excess capacity,” he observed.
“Relocation of steel mills from one region to another is not a solution,” noted Beko director for purchasing Gonca Yucel Kilic. “We need good analysis how the European measures will impact end user activity and to find a solution for all sites.”
“Almost 40% of our production is exported to Europe and, with CBAM, there will probably be a reduction of shipments to the EU, but for the moment we don’t know in Turkey how this will impact us,” said Yildiz Demir Celik supply chain director Pelin Arkan. “The reason for this is that Turkey does not have a national carbon pricing system that aligns with the European Union’s CBAM framework and we don’t know how this calculation will work for the country.”
Svetoslav Abrossimov Bulgaria
