Steelmaker Erdemir Group’s earnings jump in 2018 on strong HRC prices

Turkey’s biggest steel producer, Erdemir Group, reported earnings before interest, taxes, depreciation and amortization (Ebitda) for 2018 of TRY8.302 billion ($1.579 billion*), up 52.24% from TRY5.453 billion for 2017.

The group sold 7.482 million tonnes of flat steel products in January-December 2018, down by 1.47% from the 7.594 million tonnes sold in 2017, it said last week. The increase in earnings can be attributed to higher steel prices over the reporting period. The average market price for hot-rolled coil (HRC) - one of the group’s principal products - in 2018 was $627 per tonne, Erdemir said. Fastmarkets’ yearly average price for domestic HRC in Turkey was $599.35 per tonne ex-works in 2018 compared with an average price of $547.53 per tonne in 2017. Steel prices are likely to remain high in the coming months, according to the market participants in Turkey, because of increasing raw material prices and the demand for restocking. Sales figures Of the group’s total flat...

Published

Serife Durmus

February 11, 2019

16:33 GMT

Bursa