IDDMIB/Tecdelioğlu: Regional Normalization and Measures Against China Present a Major Opportunity for Turkey

The iron and non-ferrous metals sector, which closed 2023 at the same level despite all challenges, is optimistic about 2025. Cetin Tecdelioğlu, Vice President of the Turkish Exporters Assembly (TİM) and Chairman of the Board of the Istanbul Ferrous and Non-Ferrous Metals Exporters Association (İDDMİB), noted that the measures to be taken against China will revive Turkey’s export potential, especially with the end of wars surrounding Turkey. He stated that the sector, which closed the last year with an export figure of 12.5 billion dollars, could reach 14 billion dollars this year. Highlighting that the lost markets due to wars present a significant potential for Turkey, Tecdelioğlu also expressed that they aim to reach new markets through a total of 52 events abroad throughout the year, resulting in a resurgence in exports.

During a press conference regarding the evaluation of the iron and non-ferrous metals sector in 2024 and expectations for 2025, Tecdelioğlu mentioned that after reaching an export value of 14.4 billion dollars in 2022, the sector completed 2023 and 2024 with 12.5 billion dollars. He indicated that the wars in the north and south of Turkey, along with the election year, made 2024 a challenging year, stating, "In addition, a foreign exchange policy that does not align with inflation and high interest rates have seriously diminished our competitiveness, making it challenging to maintain prices. Despite all this, we managed to keep our exports at the same level. We declare 2024 a successful year, despite the lack of increase in exports, and congratulate all our exporters."

REGIONAL NORMALIZATION AND MEASURES AGAINST CHINA PRESENT GREAT OPPORTUNITIES FOR TURKEY

As the war in Syria is expected to conclude and the positive effects of restrictions imposed by the Trump administration in the U.S. on China begin to manifest in Turkey, Tecdelioğlu emphasized a much more optimistic outlook for 2025. He said they expect new opportunities to emerge for Turkey this year, stating: "Expectations are growing that after normalization in Syria, the Israel-Palestine and Ukraine-Russia wars will come to an end. The greatest opportunities for Turkey will arise after these wars cease and the region stabilizes. We have suffered a market loss of 10 billion dollars solely in the Russia region. Similarly, we also faced significant losses in Syria. We estimate that we can capture at least 10 billion dollars or more in additional market opportunities in Syria related to contracting services, infrastructure, superstructure, education, and housing. The markets lost due to wars stand as a great potential before Turkey. Moreover, Turkey is a very important country in the global supply chain. When we look around, with its rapid delivery, partial production capacity, strong banking system, and robust logistics and insurance networks, it stands positioned to provide quality products to the world. We need to capitalize on this effectively."

Tecdelioğlu pointed out that the measures against China and other Far Eastern countries under the Trump administration would benefit Turkey, mentioning, "Europe and America have lost many significant sectors, including automotive, electronics, machines, and energy, to China, and there is a global reaction against China and the Far East with protective barriers beginning to be erected. Turkey needs to seize this opportunity and strengthen its position as a partner to the world. Turkey has already been a solid sub-industry in automotive, machinery, defense industries, and related sectors for a long time. We must retain our status as a reliable country in the sub-industry and supply chain."

TARGETING 14 BILLION DOLLARS IN EXPORTS WITH 52 EVENTS

Tecdelioğlu stated that the sector aims for double-digit growth each year, saying, "In 2025, our entire focus, dream, efforts, and organization are aimed at achieving double-digit growth. We aim to complete 2025 with approximately 14 billion dollars in exports, with a growth target around 10 percent. Besides the lost markets due to wars, our efforts to find new markets will continue as well. This year, we will ensure greater national participation in international fairs than ever before and establish Ur-Ge programs and sectoral trade delegations. We aim to make a significant impact in 2025 through a total of 52 events both domestically and internationally."

Tecdelioğlu noted that the economic policies to be implemented in 2025 would be similar to those in 2024, and he did not expect any changes. He stressed the critical role of Eximbank and other banks in allowing exporters to become more competitive. Emphasizing the importance of Eximbank as a key player following the Central Bank's interest rate cut, Tecdelioğlu stated, "Eximbank, the main bank and biggest supporter of exporters, deserves commendation. We expect them to develop alternative products related to exports and create strategies regarding future export incomes. Additionally, we have the Turkish Trade Bank, which started operations last year and is growing rapidly, providing substantial support to our exporters. While it may not be a complete alternative to Eximbank at the moment, I believe it will rise to a much more significant position in supporting exporters in the future."

Tecdelioğlu also highlighted the recent interest of Chinese firms in Turkey, mentioning, "We are receiving reports that Chinese and Far Eastern companies are keen to invest in Turkey, especially in the aluminum sector and associated hardware sector. They are discussing with factories in Turkey and seeking locations in organized industrial zones. As protective barriers are raised in both the European Union and American markets, the Chinese are highlighting countries where they can produce as a B plan. They prefer Turkey due to its position as an important and easily accessible trading country."

COPPER, ALUMINUM, AND HARDWARE THRIVE; CASTING, HOUSEHOLD GOODS, INDUSTRIAL KITCHEN, AND FITTINGS SOUND ALARM

Addressing the sub-sectors of ferrous and non-ferrous metals, Tecdelioğlu noted significant achievements particularly in copper, aluminum, and hardware. He pointed out a 4.79% increase in volume and a 7.84% increase in value for copper, stating, "In our second-largest sector, aluminum, there is a 7.34% increase in volume and a 0.89% increase in value. The aluminum unit price has dropped by 6%, yet the increase in volume and value represents a serious success for the aluminum sector. In hardware, despite an 8.27% decline in unit price, increases in both volume and value are extremely significant for the sector."

Tecdelioğlu stated that the casting sector, household goods sector, industrial kitchen sector, and fittings sector have begun to fall below 2024 in exports despite increases in their unit prices. He indicated that these sectors are starting to lose their competitive edge and warned that the red light is flashing. He emphasized that measures must be taken urgently to halt the negative trend in these sectors.