The Carbon Border Adjustment Mechanism (CBAM) and the EU’s Green Deal are expected to significantly alter the global steel trade in the coming years. Producers that fail to invest in reducing their carbon emissions will lose competitiveness due to the new carbon tax burden, according to Ismail Demir, chairman of Turkey’s largest integrated long steel producer Kardemir. Turkey, which exports half of its products to the European Union, cannot remain outside these regulations, Demir emphasized at Kardemir’s 29th Ordinary General Meeting on May 30.

Turkey unveiled its ‘Green Deal Action Plan’ in July 2021 as a roadmap to transform the country into a more source-efficient and green economy. The CBAM will directly impact steel, aluminum, cement, and fertilizer sectors, with Kardemir focusing on low-carbon steel production in recent years. The company is currently building a new blast furnace with technology aligned with its green steel target, which will increase its crude steel capacity by 1 million mt/year to 3.5 million mt/year.

Kardemir aims to reduce carbon emissions by 15% by 2030 and become carbon neutral by 2053. The company currently has a 2.5 million mt/year liquid steel capacity and produces a range of products including billet, rebar, wire rod, sections, and angles. It has expanded its product range over the years to include rails, railway wheels, thick wire rods, and heavy sections.Turkish mills’ rebar export prices decreased on May 30 due to lower mill offer prices and lower-priced deals in a slow market. Platts assessed Turkish exported rebar at $572.50/mt FOB on May 30, down $2.50/mt on the previous day, according to S&P Global Commodity Insights.