According to SteelRadar, citing Yalcin Ertan, President of the Aegean Ferrous and Non-Ferrous Metals Exporters’ Association, the Turkish steel sector believes EU CBAM default values fail to accurately reflect the country's low-carbon production structure. The industry argues this directly impacts financial obligations and weakens their standing in the European market. The debate centers on whether calculations should use generic averages or verified manufacturer data.
Why the Turkish Industry Demands a Review
Industry representatives highlight that approximately 70% of Turkey's steel is produced in electric arc furnaces (EAFs) using substantial amounts of scrap metal. This model is traditionally less carbon-intensive than the blast furnace route; thus, using high default values distorts reality. This is critical for EU-oriented firms, where CBAM is evolving from a regulatory tool into a factor of trade competition.
The association also points out that for certain product groups, the values set for Turkey are higher than for other major production regions. The industry calls this approach unfair and urges the EU to consider Turkey's national energy and production structure. There is also an urgent call to establish accredited organizations that can verify actual emissions and reduce uncertainty for exporters.
Market Impact and Solutions from winox.ua
For the European and neighboring metal markets, the CBAM dispute has practical significance. Any change in emission calculation methodology affects the final cost of imported steel and supply chain structures. If Turkey secures recognition for actual data, it could shift the competitive balance in the flat and long rolled steel segments. For buyers, transparent product origin and certified quality are becoming essential.
In this context, winox.ua, as a supplier of rolled metal, stainless steel, and non-ferrous metals, focuses on working with verified manufacturers to offer certified products meeting modern standards. For industrial clients, this ensures better predictability in procurement as environmental regulations increasingly influence prices and material selection. This approach is vital for companies planning long-term contracts and seeking to minimize risks related to international trade policy changes.
Negotiations with the EU and Next Steps
In March, Turkey and the EU discussed technical aspects of CBAM within a dedicated working group. The focus was on how Turkey's renewable energy system could be integrated into the export methodology and the possibility of recognizing local emission verification processes. If these mechanisms are agreed upon, exporters will be able to utilize real data rather than standard coefficients.
For the steel market, carbon intensity is transitioning from an environmental policy issue to a commercial trade condition. Therefore, it is essential for producers, traders, and consumers to monitor not just price quotes but also the regulatory shifts shaping the new EU export economy. The development of the Turkish CBAM debate will indicate how flexibly the European system can account for the unique production features of its partner countries.