Tuncay Sergen: Further drop in iron ore prices to give advantage to integrated mills

At the 7th SteelOrbis Turkish Steel Market Conference, held in Istanbul on November 16, Tuncay Sergen, chairman of Turkey's Association of Flat Steel Importers and Manufacturers (YISAD), commented on the current situation in steel trading and steel manufacturing and on expectations for 2013. He said that European producers seeking to reduce expenses due to continuing economic crisis are resorting to production cuts and layoffs.
 
Mr. Sergen underlined that domestic demand is Turkey's biggest opportunity, stating that the outlook for the domestic infrastructure and construction industries is positive and that Turkish producers are able to respond to market needs at once thanks to their dynamism. He added that another opportunity for Turkey is its geographical position in a business environment where lower margins make shipments to distant locations more difficult.
 
Mr. Sergen foresees a further decline in iron ore prices, anticipating that in 2013 this will give an advantage to integrated steelmakers over mills using electric arc furnaces.