Ugur Dalbeler, CEO of Colakoglu Metalurji, one of Turkey's leading steel producers, has assessed the market situation after the decline seen in scrap prices, stating that in the last six months Turkish steel producers have been working with negative profit margins, mostly due to lower finished steel consumption.
"Lack of sales in the finished steel market, along with higher scrap prices amid winter conditions, caused steel producers to curb their production. As a result, in the first quarter of this year Turkey's steel billet production declined by 5.5 percent, while its rebar exports dropped by 10 percent," said Mr. Dalbeler.
The Colakoglu Metalurji CEO went on to say that scrap prices may fall further, since, as far as he understands, producers will continue to cut their production. As a result, the market may revive in terms of activity after a long period of sluggishness. However, he said he is not hopeful as regards prices, because measures such as production cuts need to be implemented on a longer-term basis for positive profit margins to be secured.