Posted on 22 Sep 2025
The amendments to Türkiye’s Inward Processing Regime (DIR) have sparked criticism among domestic market players, some of whom warn they will give the upper hand to foreign scrap suppliers.
The new regulation, announced last week, requires Turkish producers have a 25% share of domestic HRC, wire rod, slab and billet in their input material mix, for the manufacture of end products for export (see Kallanish passim).
Many suppliers anticipate this will boost Turkish scrap demand. Uncertainty, however, surrounds the regulation’s implementation, with most market participants sceptical of its benefits for the Turkish steel sector.
One trader remarks: “Türkiye is already struggling to compete globally. This will increase costs for producers who previously relied on cheaper imports in difficult times, further weakening the country’s position in the global arena.”
Another trader adds: “Those who complain about imports were among the largest buyers themselves. Take HRC as an example: Türkiye’s consumption exceeds its production. I understand the push to prioritise the domestic market, but do they really see a major recovery in local demand given the current economic climate?”
Questions also remain over how imports from FTA countries will be treated under the new system.
“The new DIR regulation appears to create more losers than winners in the Turkish steel market. While a handful of steel producers may see higher domestic sales and scrap suppliers expect firmer demand, the majority of the industry, re-rollers of rebar, merchant bar, wire rod, pipemakers and service centres, will face higher input costs and reduced competitiveness without a clear recovery in either domestic or export demand,” warns a re-roller.
“This raises the key question: do the limited gains for a few justify the broader strain on the rest of the sector?” he asks.
A mill concludes: “As long as demand is lacking, this will not help anyone in the Turkish steel market. The only winners will be scrap suppliers, who leave us with no margin regardless of where steel prices stand. They increased prices on the first day of the [new DIR rules] announcement.”
Source:Kallanish
