Published: Aug 11, 2026 | By: Aldrich Ma

Azerbaijan imported $76.932 million worth of ferrous and non-ferrous metals from Turkey in the first seven months of 2026, marking a 2.7% decrease compared to the same period in 2025, according to data from the Turkish Exporters Assembly.

The decline was most pronounced in July alone, when Turkey's metal exports to Azerbaijan fell sharply by 34.9% year-on-year to $11.225 million. This monthly drop stands in stark contrast to the broader trend observed earlier in the year, suggesting that monthly fluctuations are heavily influenced by project cycles, procurement timing, and logistical factors.

Turkey's Steel Sector: Production and Export Growth

Turkey's steel industry has shown resilience in 2026. In the first half of the year, Turkey's crude steel production rose 8.1% year-on-year to 19.8 million tonnes, while steel product exports increased 2.5% to 7.8 million tonnes. In June alone, steel exports surged 28.4% year-on-year to 1.73 million tonnes.

However, Turkish steel exporters are facing a shifting global landscape. The Turkish Steel Exporters' Association has highlighted that regional markets—including Romania, Bulgaria, the Balkans, Georgia, and Azerbaijan—are becoming increasingly important. The sector has set an ambitious target of 20 million tonnes in export volume and $17 billion in export value for 2026.

Azerbaijan's Construction Boom: A Key Demand Driver

Azerbaijan's steel demand is underpinned by a significant infrastructure push. In early August 2026, Azerbaijan announced a $4.9 billion credit initiative targeting roads, rail, and reconstruction projects. Lending to the construction sector jumped 33.5% year-on-year, signaling strong government commitment to infrastructure development.

The Azerbaijan steel market is expected to witness impressive growth, with a projected CAGR of 8.4% during the forecast period. Key drivers include growing construction activity, increased government infrastructure spending, and rising demand for steel in automotive and transportation sectors.

China's Steel Export Strategy: An Emerging Factor

Chinese steel exporters are increasingly eyeing markets like Azerbaijan. While China's overall steel exports declined 4.4% year-on-year to 65 million tonnes in January-July 2026, Chinese suppliers are actively seeking alternative markets amid rising trade barriers in traditional destinations like Europe, Brazil, and Vietnam.

Chinese steel has become highly cost-competitive, with price advantages prompting Turkey itself to import more Chinese material. For Azerbaijan, which relies heavily on imports to meet its growing construction demand, Chinese steel presents an increasingly attractive alternative to Turkish supplies—particularly for cost-sensitive infrastructure projects.

Global Steel Landscape: Shifting Trade Flows

The decline in Turkey's metal exports to Azerbaijan reflects broader shifts in global steel trade patterns:

1. EU Protectionism Redirecting Trade Flows: The European Union's recent safeguard measures and anti-dumping duties are forcing Turkish steel exporters to redirect volumes from the EU market to alternative destinations, including Azerbaijan and other regional markets.
2. China's Growing Presence: Chinese steel exports, while declining overall, are finding new avenues in emerging markets. The price competitiveness of Chinese steel is reshaping traditional supply chains in regions like the South Caucasus.
3. Regional Competition Intensifying: With Turkish steel exports to the EU facing headwinds and Chinese suppliers expanding their reach, the competition for market share in Azerbaijan and other regional markets is likely to intensify.

Outlook for Steel Suppliers

For Chinese steel suppliers, Azerbaijan presents a growing opportunity. The country's infrastructure boom, combined with its heavy reliance on imports, creates a favorable demand environment. However, suppliers should be prepared for:

• Competitive pricing pressures from Turkish suppliers who are redirecting volumes to the region.
• Logistical considerations in serving the South Caucasus market.
• Strong demand for structural steel, steel pipes, and scaffolding products driven by construction activity.

As Turkey's steel exports continue to target regional markets and Chinese suppliers expand their global footprint, the competition for Azerbaijan's growing steel demand is set to intensify in the coming years.

Sources: Turkish Exporters Assembly, SteelOrbis, Report.az, Azernews