Turkish Kardemir plans to sell 564 thousand tons of steel in the second quarter

Turkish integrated long products producer Kardemir plans to sell 564 thousand tons of steel in the second quarter of 2023, which is relatively stable. S&P Global reports about it.

According to the company’s regulatory documentation, the target sales volume is 173 thousand tons of billet, 141 thousand tons of rebar, 131 thousand tons of wire rod. It is also expected that sales of steel profiles in the second quarter of 2023 will amount to 119 thousand tons.

30% of each position is reserved for the shareholders of the company due to pre-emptive rights.

Meanwhile, billet prices on the Black Sea market fell again amid a decline in supply and a lack of interest in buying from Turkiye. During the week, the situation for importers of these products into the country worsened.

As GMK Center reported earlier, the electricity costs of Turkish steel mills will continue to fall in the coming months after a sharp increase in 2022, which negatively affected the export competitiveness of local producers. This was stated by the head of the Turkish Union of Steel Exporters (CIB) Adnan Aslan. According to him, the cost of gas for local steel producers will still be higher than in the EU, but prices may balance with the European level as early as June this year.

Steel enterprises of Turkiye in February 2023 reduced steel production by 19.2% compared to January 2023 – to 2.104 million tons. Compared to February 2022, in February 2023, production decreased by 28.9%. In January-February 2023, local steelmakers produced 4.709 million tons of steel, which is 23.1% less compared to the same period in 2022.