Cost and global competition pressure rising in iron and steel: Karabük industry awaits logistics support

Karabük Chamber of Commerce and Industry Chairman Fatih Çapraz stated that the iron and steel sector is going through a challenging period due to high financing costs, a slowdown in global demand, rising energy expenses, and international competitive pressure.

Expressing that producers in iron and steel, one of Karabük's locomotive sectors, are experiencing difficulties in accessing working capital, Çapraz said that the high-interest environment can also lead to the postponement of new investment decisions. According to Çapraz, the tightening in financing conditions affects not only daily production plans but also companies' capacity expansion and export strategies.

Emphasizing that the problems faced by the sector are not limited to financing, Çapraz stated that the 25 percent minimum domestic purchase requirement introduced under the Inward Processing Authorization Certificate is also considered one of the factors increasing cost pressure.

This regulation not only increases production costs but also affects the competitive balance within the sector. The decrease in flexibility in raw material supply makes price competition in international markets difficult for exporting firms and creates a disadvantage against global competitors.

Çapraz stated that the fundamental issue for the future of the Karabük industry is not just the decline in inflation, but that structural steps must be taken to increase the industry's competitive power. Transitioning to value-added production, diversifying export markets, reducing energy costs, and facilitating SMEs' access to appropriate financing are among these topics.

EMPHASIS ON FİLYOS PORT AND RAILWAY

Stating that the Filyos Project holds special importance for the industry in Karabük and the Western Black Sea, Çapraz said that Filyos Port is one of the strategic investments that could increase Turkey's foreign trade capacity and create new logistics corridors.

Noting that the effective use of the port could provide advantages not only to the Western Black Sea but also to production centers in Central Anatolia, especially Karabük, Çapraz stated that this could accelerate export processes, reduce logistics costs, and decrease the load pressure on the Marmara Region.

Stating that the natural gas processing facility implemented by the Turkish Petroleum Corporation in the Filyos region is a strategic investment in terms of energy supply security, Çapraz said that the region should be evaluated not only as an energy center but also as a strong export and logistics base.

Emphasizing that logistics costs directly affect competitive power in sectors with high-tonnage production such as iron and steel, Çapraz stated that the railway infrastructure must be strengthened to transport products to ports at a lower cost and to reduce freight expenses.

According to Çapraz, more effective use of the Karabük-Filyos connection, increasing freight transport capacity, and the realization of the Karabük Logistics Center Project will make significant contributions to the region's production, export, and logistics capacity. These steps are expected to support the competitive power of the Western Black Sea industry in international markets.

News Source: 12punto