Ukraine Faces Urgent Need to Protect Domestic Steel Market Amid Rising Turkish Imports

Ukraine Faces Urgent Need to Protect Domestic Steel Market Amid Rising Turkish Imports
Turkish Steel imports

Rising Turkish Steel Imports Challenge Ukraine’s Domestic Market

Ukraine’s steel industry faces a growing threat as Turkish imports surge. Since the full-scale invasion, Ukraine lost about 40% of its domestic steelmaking capacity. To fill this gap, imports increased sharply, with Turkey becoming the main supplier. In 2024, Turkish steel accounted for over half of Ukraine’s total steel imports, up from 17.8% in 2021. This share could surpass 60% by the end of 2025, creating concerns about market dominance.

Turkish steel gained traction due to competitive pricing and convenient logistics. Vitaliy Pritula, CEO of Evrometal, states that Turkish hot-rolled sheets dominate Ukraine’s construction sector, filling 90% of demand. Other steel products like pipes, beams, and coated sheets also show strong import growth. These shifts challenge local producers, increasing pressure on Ukraine’s steel industry to protect its market.

 

Ukraine’s Trade Policy and Protective Measures Amid Turkish Steel Surge

The Free Trade Zone (FTZ) agreement between Ukraine and Turkey, signed in 2022, aims to boost trade by reducing tariffs on most industrial and agricultural goods. However, steel products face quotas and restrictions to shield Ukrainian producers. Despite these measures, Turkish imports continue growing, fueled partly by Turkey’s access to cheaper Russian raw materials, which Ukrainian steelmakers cannot match due to war-related production costs.

Experts stress the need for swift anti-dumping investigations and protective duties to level the playing field. Alyona Omelchenko, a trade law specialist, highlights Ukraine’s lack of a legal mechanism to control products made with Russian materials. Aligning Ukraine’s trade policies with EU standards remains a priority amid ongoing war impacts and the necessity to safeguard domestic steel producers.

 

SuperMetalPrice Commentary:

Ukraine’s steel market situation exemplifies how geopolitical conflicts reshape global trade dynamics. The rising Turkish import share reflects urgent supply needs and competitive pricing strategies involving controversial sourcing. Protecting domestic producers requires agile trade policies, faster anti-dumping processes, and cooperation with EU trade frameworks. Ukraine’s recovery hinges on balancing open trade with strategic defense of key industries.

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