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One of the most important agenda items of recent years for manufacturers and exporters operating in the construction materials and construction chemicals sector is undoubtedly Chinese competition.

The contraction in the real estate sector in China and the slowdown in domestic demand have led to a significant portion of production capacity being directed to exports. This situation creates serious price pressure in global markets, especially in cement, steel, ceramics, aluminum, construction chemicals and other building materials.

This is a point where exporters and producer exporters should ask that critical question.Will we win by competing on price with China, or by increasing the value we offer to customers?

Sustaining success in today's global market is not just about price-based power; It is clear that it is possible with speed, reliability, engineering support and sustainable production capability.

So What Is China's Real Power? When we look at today's China; It accounts for more than 50% of world cement production. It alone produces approximately 54-55% of the world's crude steel production, and thanks to this scale advantage, it can produce many standard products at very low costs. This huge scale brings with it loss of flexibility, long delivery times and logistics risks. Industrialists who want to develop competitive strategies can see this fact, which creates important opportunities for Turkish manufacturers.

Turkish exporter offers not the cheapest supplier, but the most reliable business partnership.Because, in the construction industry, time can be more valuable than the product price. A material delay of several weeks at a construction site; may increase labor costs, delay delivery dates,

could result in penalties worth millions of dollars.

Shipments from China to European or Middle Eastern markets are affected by long transit times and global logistics risks.

Türkiye, on the other hand, has a significant advantage thanks to its geographical proximity to the markets of Europe, the Balkans, North Africa and the Middle East.

For this reason, customers are not provided with the product; fast delivery, reliable stock management, regular supply, after-sales support

Companies that can offer products can use this advantage to cope with China. Customers can be convinced that the price difference is largely compensated by the offering of these values.Customers buy security of supply as well as product.

On the other hand, the Border Carbon Regulation Mechanism (CBAM/SKDM) implemented by the European Union directly affects carbon-intensive sectors, especially cement, iron-steel and aluminum. Under CBAM, importers will have to report the carbon emissions generated during the production of products and bear the carbon cost under certain conditions. This creates a significant competitive advantage for companies engaged in low-carbon production. Environmental certificates such as cements with low clinker content, recycled raw materials, construction chemicals with a low carbon footprint, Environmental Product Declaration (EPD),

It increasingly influences purchasing decisions, especially in the European market. Green production is now not only an environmental responsibility but also a strategic investment for exports. Green transformation may be a strategic resource that is difficult to replace in the long run.It is very difficult to compete with China on price for standard products. However, companies that offer customer-specific solutions can largely escape price pressure. When customers are offered not only products but also products that provide direct cost advantages, their preferences may be in your favor. Therefore, manufacturers that offer engineering support can move from price-oriented competition to value-oriented competition.

Another point to note is that Chinese manufacturers mostly focus on high-volume orders. In contrast, Turkish producers; low minimum order quantities, customer-specific production, special packaging, fast sample preparation and short lead times

It can act much more agilely in areas such as. This flexibility is an important reason for preference, especially in boutique projects and jobs with special technical requirements.

China may be the world's largest industrial power in terms of production capacity. However, success in the global market is not only due to large production volumes; It is provided with reliability, speed, sustainability and customer-oriented solutions.

Türkiye's geographical advantage, advanced production infrastructure, engineering capability and fast delivery power, combined with the right strategies, offer significant competitive advantages that will balance China's price pressure.

Companies that offer more value to the customer rather than entering into a price race will achieve permanent growth in the global market.

China will continue to be an important player for many years with its global production power. However, competition is not just about scale. Manufacturers who can offer speed, flexibility, sustainability and customer-specific solutions will always have a strong position in the global market.

 

 

 

Resources

World Steel Association. World Steel in Figures 2025. Annual statistics on world crude steel production. https://worldsteel.org

United States Geological Survey (USGS). Mineral Commodity Summaries – Cement (2025). World cement production and country-based production data. https://www.usgs.gov

European Commission. Carbon Border Adjustment Mechanism (CBAM). Official regulations on the European Union's Border Carbon Regulatory Mechanism. https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en

European Commission. Questions and Answers on the Carbon Border Adjustment Mechanism (CBAM). Official statements about CBAM's scope, reporting obligations and transition process. https://ec.europa.eu

International Energy Agency (IEA). Cement and Iron and Steel sector reports. Analyzes on low-carbon production technologies and the decarbonization process of the sector. https://www.iea.org

World Cement Association and Global Cement Magazine. Sector analyzes on production, sustainability and international trade trends in the world cement industry. https://www.worldcementassociation.org