Turkey and Nigeria: New Centers of China's Steel Investments

China's Steel Investments are Breaking Boundaries

China's steel investments are expanding beyond borders with a strategic transformation. The country is establishing new steel production centers in countries such as Turkey, Nigeria, and Saudi Arabia to escape production restrictions, moving towards creating a global steel axis.

Production Increase Exceeding Expectations

In the next two years, a total of 50 million tons of steel production is expected to take place abroad. These developments are emerging as a result of the capacity contraction in the steel industry in China and the restrictions implemented under Beijing's 'Steel Industry Stability Plan'.

Effects of New Investments and Projects

Steller Steel, operating in Nigeria, announced that it will establish a new $450 million steel production facility. This investment responds directly to Africa's infrastructure needs while also providing production advantages to Chinese manufacturers.

Similarly, Baoshan Iron & Steel (Baosteel) is building an integrated facility worth $4 billion in Saudi Arabia. This project represents the largest investment by Chinese manufacturers in the Middle East, aiming to increase their presence in the region.

Turkey's Strategic Position

Turkey is drawing attention, particularly with the $250 million stainless steel investment planned by Yongjin Technology Group in Yalova. Turkey's proximity to European and Middle Eastern markets creates a strategic bridge for Chinese companies.

New Direction for Chinese Manufacturers: Outward-Bound Production Facilities

New trade barriers, along with high customs duties and regulatory restrictions, are directing Chinese steel manufacturers abroad. In this context, Tsingshan Holding Group's $1 billion investment in Zimbabwe stands out as a strategy to strengthen their position in the African market.

Future Investments and Their Impact on Markets

Experts state that these investments could quickly proliferate not only in steel but also in aluminum, copper, and other energy-intensive industries. These strategies aim to reduce carbon footprints while maintaining competitive strength in global supply chains.