Turkiye’s stainless steel industry looks to Malaysia for diversification of raw material supply

• MoU may help boost Turkish supply during periods of tight availability
• Move to reduce Turkiye’s reliance on traditional origins in Asia, Europe

Turkiye’s stainless steel industry has taken a strategic step towards diversification of raw material supply with the signing of a memorandum of understanding between the Stainless Industrialists and Business Association (PASID) and Malaysia-based producer Bahru Stainless. The agreement, announced this week, establishes a non-exclusive and non-binding cooperation framework aimed at expanding market access and positioning Malaysia as an alternative source of stainless steel raw materials for Turkish consumers.

The move comes at a time when Turkish stainless producers and processors continue to face volatility in global feedstock supply and pricing, particularly for flat stainless products and slabs. While the memorandum does not create any obligation for purchase, sale, or delivery, it enables PASID to act as a facilitator for Bahru Stainless in Turkiye, supporting product promotion, customer outreach, and supply-chain coordination.

Supply diversification gains prominence

PASID chairman Arslan Kucukemre said the agreement effectively introduces Bahru Stainless as an alternative producer for the Turkish market, allowing domestic companies to access required grades through a different supply channel. Market participants note that broadening the supplier base could improve negotiating leverage and reduce dependency on traditional origins in Asia and Europe.

A Turkish stainless steel trader said the framework could be particularly useful during periods of tight availability, even if volumes remain limited in the near term due to the non-binding nature of the deal.

Trade ties align with broader national goals

The MoU was signed during the Malaysian prime minister’s official visit to Turkiye on 6-8 January, alongside several agreements focused on technology transfer and trade cooperation. Both governments reaffirmed their target of doubling bilateral trade to $10 billion from the current $5 billion level.

Outlook

While immediate trade flows are unlikely to change materially, industry sources expect exploratory shipments and deeper commercial discussions in the coming months, especially if regional stainless steel prices remain volatile and Turkish buyers seek flexible sourcing options.