Erdemir Group increases sales, earnings despite perceived Chinese control of prices

Turkey’s biggest steel producer, Erdemir Group, sold 7.60 million tonnes of flat steel products in 2017, an increase of 5.56% from the 7.20 million tonnes sold in 2016.

The group reported earnings before interest, taxes, depreciation and amortization (Ebitda) for 2017 of TRY5.453 billion ($1.455 billion*). This was up by 101.91% from Ebitda of TRY2.701 billion ($720.47 million*) reported for 2016. The average market price for hot-rolled coil (HRC) in 2017 was $542 per tonne, Erdemir said. Metal Bulletin’s yearly average price for HRC was $542.63-552.42 per tonne ex-works in 2017, compared with $440.67-452.25 per tonne ex-works in 2016. The Turkish flat steel market uses US dollars for all its trading in raw materials, semi-finished materials and end-products. The Turkish lira is used only for a few small retail transactions. But the resulting dependence on dollar-denominated raw material prices, and the global variations in commodity prices, cause fluctuations in the costs for steel-related sectors and in the demand for steel products, Erdemir said. Erdemir believes the volatility in steel prices will continue from late 2017 into this year. It also believes that...

Published

Serife Durmus

February 05, 2018

17:20 GMT

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