Erdemir Group increases earnings in Q1-Q3 despite fall in sales

Turkey’s biggest steel producer, Erdemir Group, sold 5.591 million tonnes of flat steel products in January-September 2018, similar to the 5.590 million tonnes sold in the corresponding period of 2017, the group said last week.

The group reported earnings before interest, taxes, depreciation and amortization (Ebitda) for January-September 2018 of TRY6,269,432,000 ($1,136,450,000*). This was up by 67.97% from Ebitda of TRY3,732,432,000 ($676,574,000*) reported for January-September 2017.
The average market price in the third quarter of 2018 for hot-rolled coil (HRC), one of the group’s principal products, was $630 per tonne, Erdemir said.
HRC prices in Turkey were not expected to increase in the short term, because of weak domestic demand. But market participants were uncertain about prospects for further price falls because of the high costs for scrap and other raw materials.
Fastmarkets’ assessment of the quarterly average price for domestic HRC in Turkey in July-September 2018 was $602.71 per tonne ex-works.
Sales figures

Among the group’s total flat steel sales of 5.591 million tonnes in January-September, export volumes came to...

Published

Serife Durmus

October 31, 2018

15:32 GMT

Bursa