EAF Emphasis Establishes Export ExcellenceTurkey’s steel sector has shifted decisively toward electric arc furnace technology, with 70% of its production running on EAFs. This far exceeds the global average and is reducing both emissions and costs. As PASID points out, EAF-based steel production offers cleaner and more flexible output compared to traditional blast furnace methods, underpinning Turkey’s growing export competitiveness in the EU.

Carbon Curbs Complement Competitive CostsThe EAF dominance not only lowers Turkey’s carbon footprint but also enables more cost-efficient production. By melting recycled scrap steel using electricity rather than relying on metallurgical coal and iron ore, Turkish mills can react quicker to market shifts, optimize energy use, and realise quicker turnaround times, ideal for serving the EU’s evolving demand landscape.

EU Quotas Catalyse Turkish ExportsThe European Union’s steel safeguard measures allocate quotas favorably to Turkey under the “other countries” category. This enables Turkish producers to access EU markets with fewer barriers. Combined with their energy-efficient methods, Turkish exports of hot-rolled coil, rebar, and other steel products have gained traction within the bloc.

Product Portfolio Positions Producers ProminentlyTurkey’s steel shipments include hot-rolled coil, wire rod, rebar, and plate, fulfilling diverse industrial needs across EU nations. As noted, Turkish hot-rolled coil shipments to Spain surged more than sevenfold year-on-year in May, with broader exports to Italy, Belgium, the UK, and Portugal also rising sharply. This wide-reaching portfolio cements Turkey’s supply chain integration across sectors.

Domestic Dynamics Drive Dual Export SurgeTurkish hot-rolled coil exports rose about 34% year-on-year in May, thanks in part to the EAF-led cost benefit and EU quotas. Long products like rebar also grew by 22%, with Romania emerging as a key export market. While some segments faced quota-driven limits, EAF flexibility allowed Turkish mills to pivot to use-case-specific products in demand.

Global Grid Aligns with Green Steel GoalsWith the world seeking greener steel, Turkey’s EAF-heavy capacity gives it an edge. Electric arc furnaces emit less CO₂, especially when powered by renewable energy, aligning Turkey with global decarbonisation trends. Although the precise emissions mix wasn't detailed in PASID’s report, the EAF share speaks to a greener production orientation.

Policy Parameters Persist as Competitive PrerequisitesThis EAF-driven edge highlights the importance of regulatory support. EU safeguard quotas and Turkey’s energy flexibility have combined to strengthen trade outcomes. However, future developments, such as the EU’s phased Carbon Border Adjustment Mechanism, could shift dynamics, emphasising low-carbon sourcing.

Strategic Shift Signals Sustainable Steel SupremacyPASID’s analysis illustrates that Turkey’s heavy reliance on EAFs has yielded both emissions and cost advantages. As EU demand evolves and green credentials grow in importance, Turkish producers may continue to consolidate their standing, provided they leverage renewable power and adapt to incoming carbon regimes.

Key Takeaways:

• 70% of Turkey’s steel output now uses electric arc furnaces, boosting efficiency and lowering carbon intensity.

• Turkish hot-rolled coil exports to the EU rose ~34% year-on-year in May, supported by EAF-driven cost advantages and quotas.

• Products like rebar also saw strong export growth, aided by flexibility and EAF alignment with green steel trends.