Turkey is amending their steel Inward Processing Regime (DIR), which requires producers to input at least 25% local hot-rolled coil, wire rod, slab, and billet for their finished product for export.

The system amendment is not finalized yet, but it has already received lots of market complaints bearing doubt about the benefits for the Turkish steel industry.

The advantage of lower imported raw material will be gone, and scrap price will increase, both of which will harm the global competition of Turkey’s steel products. 

Besides, the free zone countries’ steel imports would be a debate for the new system. The only winner for the new system will be the scrap suppliers, as they raised the price when the new system rules were announced.