Turkey: Erdemir Group’s liquid steel production drops in Q1CY’22

Erdemir Group, a leading scrap consumer and steel producer in Turkey, has released its first-quarter result for CY’22. The leading mill witnessed 2.03 million tonnes (mnt) of liquid steel output in Q1 CY’22. Production volume decreased sharply by 14% y-o-y against 2.35 mnt in the corresponding period last year (CPLY), as per the company’s report.

• Capacity utilisation at 83%: The company’s capacity utilisation stood at 83% in Q1 CY’22, whereas the figure in CY’21 was 94%.
• Finished steel production up: The company’s finished steel production increased by 3% y-o-y in Q1 CY’22. Out of which, 1.35 mnt comprised hot rolled coils (HRCs), 0.46 mnt were cold rolled coils (CRCs), and the balance of 0.27 mnt comprised finished longs.

While finished steel production in Q4 CY’21 was recorded at 2.11 mnt.

• Hike in share of steel exports: Steel exports accounted for 0.33 mnt in Q1 CY’22 compared to 0.21 mnt in Q1 CY’21 and sales share was 16.5% in the current quarter. Around 0.50 mnt were exported in Q4 CY’21.
• Financial results:

EBITDA was recorded at $693 million in Q1 CY’22, up by 32% y-o-y.

Net profit stood at $405 million in Q1 CY’22, up by 14% y-o-y.