Session timeout

Sorry, your session timed out after a long time of inactivity. Please click OK and Sign In again.


OK

Interview with Robert Yildirim, Yildirim Group

This week we spoke to Robert Yildirim, President & CEO of Yildirim Group. Robert delves into the future for the chrome industry, and his views on the future of the market.


You can hear more from Robert and his insights on the future of the chrome industry on 12 November as part of the Chrome expert panel discussion at the 34th International Ferroalloys Conference  


Fastmarkets MB (MB): Good day Robert, thanks for agreeing to take part in this interview. Having been to many of our International Ferroalloys conferences, what makes this event stand out to you?


Robert Yildirim (RY): Good Day, it is my pleasure to meet you for this interview. I have been continuously attending your International Ferroalloys conferences since I bought ETI Krom in Turkey in 2004. This conference is an excellent event to meet all our global customers, competitors, solution partners, service providers and analysts, to exchange ideas and learn about all ferroalloys markets.


MB: What does protectionism mean for the chrome industry? What are the risks for chrome contained raw materials in global markets?


RY: Chrome ore is an abundant commodity in the world but protectionism can be a risk for the market, especially for the Chinese consumers. Though, I do not see any imminent risk today, this is a time-to-time-escalating discussion in South Africa and Zimbabwe. For instance, Zimbabwe banned chrome ore exports in 2011 but, in my opinion, it is not a solution for the whole market’s sake.

Moreover chrome ore is a “precious” commodity, as it cannot be replaced by any other commodity in the stainless steel production. We, as YILDIRIM, have high quality chrome ore reserves in Turkey and Kazakhstan and we know how precious this material for the market and we always build our strategy on this pillar. Briefly, chrome ore is an abundant but at the same time an irreplaceable commodity. Governments’ policies in the last years tend to change towards protectionism but I do not see a material risk.

The real risk in my opinion is the fragmented structure of the market. There have been no real capacity increases in the market for a long time but there are many new minor producers elsewhere. For instance, India, Zimbabwe and Albania are the epicenter of this fragmented structure. As a result of this fragmented structure, the market consolidation is still in progress. The consolidation in South Africa showed us that otherwise did not help anyone. I believe in open market economy and competition but what happens in this market is like a mass suicide. This is why I think the current market structure is the biggest risk and needs an immediate solution.


MB: What are the three things that will have the biggest impact for the future?


RY:
  1. Trade wars
  2. Protectionism becomes very popular globally and economies are getting influenced by politicians for localization
  3. Increase of interest rates and inflation may push another global economic crisis.


You can hear more from Robert Yildirim and his insights on the future of the chrome industry on 12 November as part of the Chrome expert panel discussion at the 34th International Ferroalloys Conference 
This content is provided by Fastmarkets MB Events for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.