Ali Pandir, chairman of Turkish integrated steelmaker Erdemir Group, has announced a net profit for the company of $137 million for the first quarter of the current year, while sales revenues amounted to $1.17 billion in the given quarter. The company's profitability in the first quarter this year increased due to the slow decline in product prices despite the rapid decline in raw material prices.
Regarding the total targeted production of 8.4 million mt for 2015, Mr. Pandir said, "Our production was 8.1 million mt last year. We will sell all our production." He said that the company's investments will continue, adding "We plan to invest $479 million in 2015. We will make a further $611 million in investment between 2016 and 2019."
Remarking that the decline in raw material prices commenced in the second half of 2014, the Erdemir chairman went on to say, "This decline was led by the slowing trend in the Chinese economy. In the first half of 2014, iron ore prices declined first to $80-90/mt from $120/mt and to lower than $50/mt in 2015. The decrease in the product market was slower. Amid the rapid decreases in costs and raw material prices, the slower decrease in product prices boosted integrated producers' profitability. We usually conclude our sales in advance. Our order books for June shipment products are full."
With a 41 percent share in the domestic market for automotive steel in 2014, Erdemir Group has made improvements in the last five years by increasing its share in the market from 10-15 percent. The company aims at reaching 50 percent in the coming period. Producing 10 percent of its flat steel output for the automotive industry, Erdemir Group sold 700,000 mt, including exports, to the automotive industry in 2014. Additionally, the company is continuing to focus on this industry with its new R&D centre.