Cemtas’ orders, output still unaffected by automotive stoppages

Output and domestic and export orders of one of Turkey’s largest alloy bar producers, Bursa-based Cemtas, has not yet been affected by recent stoppages announced by automotive producers globally, S&P Global Platts has learned.

“As of today, we didn’t face any disruption that could effect our activities. Our domestic and export customers didn’t make any order cancellations since today and our production and shipments are ongoing according to plan,” the company said Wednesday, adding that they don’t have any plan of an output suspension or stoppage.

Cemtas finished the installation of its new auto stabilizer bar line for Mercedes Benz and started trial production in August, as reported. The company said installation of another auto stabilizer bar line for MAN is expected to be completed at the end of 2020.

Cemtas has melt shop capacity of 193,200 mt/year. It supplies bearing steel, free-cutting steel, leaded steel, spring steel and tool steel, mainly to the automotive sector.

Turkey’s largest automotive steel producers have been announcing output suspensions one after another in recent days in line with the suspensions seen in the global automotive sector. Some of Turkey’s major automotive producers, Ford Otosan, Toyota, Honda and Mercedes-Benz Turk, decided to suspend production by two weeks as of March 23, as Platts has reported.

These suspensions are expected to pull down automotive steel demand in Turkey in the mid-term, especially if these output cuts last longer than expected, amid the expanding virus outbreak.

This could also result in output cuts in some of the largest steel suppliers to the sector.

— Cenk Can