U.S.-based financial giant S&P Global highlighted new opportunities for the Turkish economy arising from the collapse of Bashar al-Assad’s regime, with a particular emphasis on the pivotal role of the Turkish steel sector in the construction industry.
In a commodity report published Tuesday, S&P Global discussed the potential for reconstruction in Syria and the geopolitical developments that could create recovery opportunities for the Turkish economy.
The report also underscored the positive impact of the Trump administration’s policies on Türkiye’s steel industry.
Sources cited in the report expressed hope that stability in Syria following the December overthrow of Assad’s regime by opposition forces could lead to a surge in construction activities. This, in turn, is expected to drive demand for construction-grade iron supplied by Türkiye.
Iskenderun iron and steel factory: A key player
An expert speaking to S&P highlighted the significance of iron and steel production in Iskenderun, Hatay, stating: “The Iskenderun region is poised to work directly with Syria, which could lead to an imbalance between supply and demand in the domestic market.”
Experts also noted that potential sales to Syria could benefit Türkiye, though the lack of a stable government in Syria complicates forecasts.
“I believe 2025 will be tougher than 2024, but I remain optimistic about it being a good year,” the expert added.
Meanwhile, a representative from the iron and steel sector in the Marmara region pointed out the challenges faced by the Turkish construction iron market, including relatively low imported scrap prices and weak demand.
The representative said these factors have intensified competition among market players.
Türkiye’s construction iron exports
Despite a drop in scrap prices in the fourth quarter of 2024, with cost and freight prices evaluated at $335 per tonne as of Dec. 12, construction iron prices in Türkiye remained relatively stable.
Data shows the net margin between Turkish exported construction iron and imported scrap reached $230 per tonne on Oct. 28, marking the highest level of the year, up from $173.75 per tonne on Jan. 4.
According to recent data from the Turkish Statistical Institute (TurkStat), Syria became Türkiye’s third-largest market for construction iron exports in October, with shipments increasing eightfold to 18,000 tonnes (19,841 tons) compared to the same period last year.
Türkiye’s steel exports overall rose 29.1% year-on-year in the January-November 2024 period, reaching 12.1 million metric tons.
During this period, Yemen remained Türkiye’s top market for construction iron, despite a 10% year-on-year decline. Romania doubled its imports to 217,000 metric tons, becoming another key market for Turkish construction iron.
