Çolakoğlu Metalurji: Carbon cost and green transition will determine steel prices in 2026

Çolakoğlu Metalurji targets net zero emissions by 2050 and a 55% emission reduction by 2030. The company says steel prices in 2026 will be shaped not only by supply and demand but also by carbon costs and regulatory compliance.

Newsroom

Published 16 March 2026, 03:28 Updated 4 October 2026, 16:58 3 min read

At a glance

Çolakoğlu Metalurji expects carbon costs and regulatory compliance to influence steel prices in 2026 alongside supply and demand.
The company says CBAM's financial obligation phase will begin in 2026, with quota pressure and carbon costs affecting price formation.

With a production capacity of 3 million tonnes of liquid steel, 4.5 million tonnes of hot-rolled coil, and 1 million tonnes of reinforcing steel, Çolakoğlu Metalurji Sales and Marketing Director Gökhan Erdem spoke with Demir Çelik Store about the company's 2025 activities, future vision, targets, and the Turkish steel sector's 2026 expectations. Erdem said: “Throughout 2025, in line with the innovative investments, green transition projects, and digitalisation applications that gained momentum in the sector, we took steps supporting the global competitiveness of the Turkish steel industry. 2026 will also be the year of simultaneously implementing investments aligned with the net-zero carbon vision, digitalisation-focused efficiency gains, and a competitive strategy based on high-value-added products.”

Ranked 14th among Türkiye's top 500 industrial enterprises

Founded in 1945 by Mehmet Rüştü Çolakoğlu, the company operates with decades of experience in the iron and steel sector. As one of the rare producers in the Turkish steel sector capable of manufacturing both flat and long products, the company exports to more than 150 countries.

We adapted quickly and flexibly to changing market conditions

Despite ongoing uncertainties and demand contractions in global markets, Çolakoğlu Metalurji was an important part of the resilience shown by the Turkish steel sector in 2025. The company reflected experience gained from previous years into production and operational processes while adapting quickly and flexibly to changing market conditions.

We aim to extend our environmental responsibilities further by expanding CBAM-compliant carbon data transparency

The digitalisation journey, extending from production processes to business models, strengthens not only efficiency gains but also sustainability targets. Thanks to digital infrastructure systems, processes are becoming more transparent and traceable, while CBAM-compliant carbon data transparency is being expanded across the supply chain.

Carbon costs and regulatory compliance will also determine prices in 2026

The EU's new quota regulations represent not only a quantitative restriction for the Turkish steel sector but also herald a new era where carbon intensity and sustainability performance will be more directly reflected in prices. Producers with low-carbon production infrastructure, verifiable reporting capabilities, and the ability to build long-term partnerships with customers will find this process offers an important advantage.

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With CBAM entering its financial obligation phase from 2026, quota pressure and carbon costs will jointly affect price formation. This situation is expected to create price pressure on products with high carbon intensity while making price differentials more visible for low-carbon emission steel products. Therefore, in 2026, prices will be determined not only by supply-demand dynamics but also by carbon costs and regulatory compliance.

We target net zero emissions by 2050

As Çolakoğlu Metalurji, with our decarbonisation vision, we aim to reduce emissions by 55 percent by 2030 and reach net zero emissions by 2050. This target is not just an environmental responsibility but also a strategic vision that enhances our company's competitiveness. Energy transformation is one of the key components of this journey. We aim to gradually increase the share of renewable energy in electricity needs through AI-supported analyses for energy efficiency.

Frequently Asked Questions

What are Çolakoğlu Metalurji’s decarbonisation targets?

The company targets a 55 percent emission reduction by 2030 and net zero emissions by 2050, treating these as strategic competitive goals as well as environmental responsibilities.

What is Çolakoğlu Metalurji’s production capacity?

3 million tonnes of liquid steel, 4.5 million tonnes of hot-rolled coil, and 1 million tonnes of reinforcing steel annually. The company is one of the few Turkish producers capable of manufacturing both flat and long products.

How will CBAM and quota changes affect steel pricing in 2026?

Carbon costs and regulatory compliance will determine prices alongside traditional supply-demand dynamics. Products with high carbon intensity face price pressure, while verifiably low-carbon steel commands price differentials — rewarding producers with transparent reporting and low-carbon infrastructure.

How is Çolakoğlu Metalurji using digitalisation to support sustainability?

Digital infrastructure systems increase process transparency and traceability, and the company is expanding CBAM-compliant carbon data transparency across its supply chain using AI-supported energy efficiency analyses.

What is Çolakoğlu Metalurji’s strategic position in the Turkish steel sector?

The company is ranked 14th among Türkiye’s top 500 industrial enterprises and exports to over 150 countries. Founded in 1945, it is one of the rare Turkish producers capable of manufacturing both flat and long products.