Turkish steel executive urges EU to lift quotas on sustainable producers

By Nuran Erkul, Bahattin Gonultas, and Emir Yildirim

DAVOS, Switzerland (AA) - Turkish billionaire Fuat Tosyali, CEO of iron producer Tosyali Holding, on Tuesday called on the European Union to lift steel import quotas for countries with sustainable, upstream production such as Türkiye and Algeria, arguing the measures threaten the future of Europe’s steel industry.

Speaking on the sidelines of the World Economic Forum’s 56th annual meeting in Davos, Tosyali said the EU must allow access for low-emission upstream producers if it wants to ensure long-term sustainability in the sector.

“The real decision the EU should take is to lift the quota for countries that are upstream producers, like Türkiye and Algeria,” Tosyali said.

He added that EU measures, while aimed largely at China, are also applied to Türkiye, “which is undermining the future of the EU’s steel industry.”

Tosyali said Türkiye’s economic program has been producing tangible results, particularly in curbing inflation, and has improved predictability for businesses.

“In recent weeks, both Finance Minister Mehmet Simsek and the governor of the Central Bank said in their presentations that inflation lost its persistence and thus turned downward -- we are already seeing the effects of this development,” he said, adding that the Turkish economy has become “more predictable.”

“The worst is behind us and now we look ahead -- this is also what we are discussing in our conversations with our counterparts in the sector,” he said.

Tosyali said Tosyali Holding is Türkiye’s largest steel producer and ranks among the world’s top 50 steel companies.

“Despite the restrictive measures on all imports all around the world last year, we still broke records in production and exports in 2025,” he said. “This will continue to increase in the coming period, as with the investments we made, we will see the ranking of our firm in the top 30 and 20.”

He said the global steel industry has been undergoing a permanent structural transformation over the past five years, noting that China accounts for roughly half of global crude steel production, which continues to deepen imbalances in the sector.

“This disruption is rooted in chronic overcapacity, China-led and subsidy-supported supply surplus, weakening global demand, and increasingly restrictive trade and carbon policies,” Tosyali said. “There is an excess capacity of around 680 million tons in this sector as of today, and this could reach over 720 million tons by 2027.”

Tosyali also stressed that steel production is a major contributor to global warming, arguing that governments should not support facilities operating with outdated, high-emission technologies.

He said lifting quotas on low-emission, upstream steel producers would help the EU advance its green transition while strengthening the resilience of its own steel industry.