Germany’s Wuppermann, Turkey’s Galva Metal end steel partnership

One of Turkey’s largest steel service centers, Galva Metal, and Germany’s large steel processing company Wuppermann Gmbh have ended their partnership, which has been ongoing for more than 10 years, as of Jan. 8, Galva Metal President Tolga Kisacikoglu said.

“Our partnership with the German steel producer Wuppermann Gmbh has come to an end with the purchase back of our partner’s 35% shares,” Kisacikoglu said, adding that the main reason for the separation is their different views on the company’s future.

“While Galva Metal wants to invest and grow; they want to walk a more cautious path. As a result, we have decided to leave our ways by consensus,” he said.

Galva Metal, however, will continue its commercial activities with Wuppermann, the chairman added.

Fluctuations in raw material and energy costs as well as demand conditions pressured Turkish mills’ and stockists’ output, sales and pricing throughout 2023.

According to the latest Turkish Steel Producers’ Association data Turkey’s steel output declined 6.1% on the year to 30.5 million mt in January-November 2023.

The steel export/import coverage ratio of Turkey’s steel industry fell to 55:100 in the first eleven months of 2023 from 92:100 a year prior as import volumes increased in the period by 18% on the year to 16 million mt.

Turkey’s steel export volumes however, declined by 34% on year to 9.4 million mt in January-November 2023, while the revenue generated from these exports fell significantly by 43.4% to $7.5 billion, on low demand and stiff competition in global markets.

Platts, part of S&P Global Commodity Insights, last assessed the Turkish HRC steel price at $715/mt ex-works Jan. 5, up $5/mt on the week, amid strengthened imported scrap costs.

Author Cenk Can