Recession concerns are pulling down steel demand and raw material prices globally, while the Ukraine war is also pressuring prices lower by changing trade routes, Turkish merchant bar and steel sections producer Kocaer Celik said at its H1 results report released late Aug. 2.
“Due to the sanctions, supplies from these countries head towards Turkey,” Kocaer said, adding that energy and freight costs were rising due to the war and pandemic.
Turkish mills’ rebar export price peaked at $970/mt FOB March 24, up $280/mt from the end of 2021, but have since fallen to $615/mt FOB Aug. 3, according to S&P Global Commodity Insights data.
Kocaer increased its H1 sales volume by 10.4% on the year to 278,758 mt and its net sales revenue by 153% to Lira 4.32 billion ($242 million), it said.
“Despite the rise in energy and freight costs and fluctuations in scrap and iron ore prices during the first half of 2022, our net profit also significantly increased by 200% to Lira 323 million,” Kocaer said.
The company is aiming to focus more on value-added steel production with new investments and acquisitions abroad, CEO Hakan Kocaer said.
Kocaer recently raised its output capacity by building a new 100,000 mt/year hot-dip galvanizing line and has a combined steel production capacity of 800,000 mt/year at its three Turkish mills producing merchant bars, beams, channels and sections.
— Cenk Can