Tolga Yalgi: Competition is no longer between companies, but between the industrial policies of countries
Speaking at EUROMETAL Steel Day and the 11th YISAD Conference on Sheet Steel, which was held at the Marriott Hotel Asia in Istanbul on Tuesday, March 24, in collaboration with SteelOrbis, Tolga Yalgi, CEO of Turkish steel manufacturer Tatmetal, spoke about developments in the global market and Tatmetal's investments.
Stating that the equilibrium established after the Second World War has changed, leading to the emergence of a new geopolitical and economic order, Mr. Yalgi noted that a model has emerged in this new system in which the market is governed by governments rather than free market dynamics, and strategic sectors are protected. Stressing that this transformation has fundamentally changed the rules of competition, he added that competition is no longer between companies, but between the industrial policies of countries.
He noted that the United States is pursuing an active policy of reindustrialization aimed at returning production to its borders, supported by trade policies aimed at reducing dependence in critical sectors. Pointing out that China's approximately 30 percent share in global production significantly affects the market balance, Mr. Yalgi noted that China's high production capacity creates structural pressure not only due to price competition, but also due to global oversupply. Meanwhile, the European Union is restructuring its industrial policy through mechanisms such as carbon regulation, an emissions trading system, and a carbon boundary adjustment mechanism. According to Yalga, this approach indicates that production is being reviewed not only in terms of costs, but also in terms of environmental criteria.
The European market remains critically important for Turkey
Although the European market continues to play a crucial role in Turkish steel exports, factors such as geographical proximity, logistical advantages, and the Customs Union Agreement provide significant competitive advantages. Mr. Yalgi stated that Turkey stands out for its fast delivery capabilities and production based on electric arc furnaces, adding that the existing trade relations create a solid foundation for the Turkish steel industry. However, he warned that the EU's protectionist measures pose the greatest risk, in particular the planned quota cuts and tariff increases due to take effect on June 30, 2026, which could directly affect Turkey's exports.
Energy and geopolitical risks come to the fore
Stressing that the growing geopolitical risks in the Middle East are putting upward pressure on energy prices