Mehmet Cakmur: Increases in coal prices support flat steel industry

Thursday, 09 March 2017 17:12:30 (GMT+3)   |   Istanbul
       

The first SteelOrbis Market Talks Meeting in the current year has been held in the western Turkish city of Izmir. Speaking at the meeting, Mehmet Cakmur, sales and marketing director of Turkey-based steel producer MMK Metalurji, stated that the increase in coal prices since last year have supported the flat steel industry globally and they expect these increases to continue in the coming three or four months. As regards iron ore and scrap, Mr. Cakmur stated that iron prices, which averaged at $50/mt in 2016, are expected to increase to $90/mt and stay at this level in the coming period. 

Mr. Cakmur said Turkey’s steel production showed a year-on-year increase of 0.5 percent in 2016 and domestic steel production is expected to rise further. In particular, flat steel producers who use scrap as raw material are expected to increase their capacity utilization rates in the current year, thereby reducing Turkey’s dependence on flat steel imports.

Regarding trade protection measures, the MMK Metalurji official stated that the EU’s antidumping duty investigation on hot rolled coil imports (HRC) from Russia, China and Iran can be an opportunity for Turkey. Because of the investigation, Russia and Iran have not been able to export HRC to Europe since the beginning of this year and, accordingly, Turkey can be the EU’s new partner for HRC imports.

Mr. Cakmur also noted that the increases in HRC prices have made producing HRC from scrap more advantageous, and, accordingly, in June this year they will decide whether to restart their electric arc furnace (EAF) and hot rolled strip facility, which was idled in 2012 due to high raw material costs and growing energy prices in Turkey while HRC prices were moving down.