SteelOrbis talked to Selen Sanal, owner of YFO Foreign Trade Inc., regarding the latest situation the stainless steel market.
Can you give us some information about the current situation in the stainless steel sector?
China continues to put pressure on prices with its high production capacity. However, due to the decline in domestic demand, they are turning to exports. This is driving down prices in the European and Turkish markets. Although energy costs have fallen in the EU, industrial production is still sluggish. The stagnation in the automotive and construction sectors is limiting demand for stainless steel. Nickel prices on the LME are showing signs of recovery compared to the beginning of the year but remain volatile. We believe this makes it difficult for stainless steel prices to establish a clear direction.
Looking at the situation in Turkey, the influx of low-priced materials is putting pressure on local producers. Many producers are focusing on price rather than quality.
Despite this, some sectors remain active. Project-based purchases and inventory management are now being handled more strategically. At YFO Foreign Trade, we are trying to manage this period carefully and flexibly.
How would you describe the trends in demand and prices?
Demand is fluctuating greatly. There can be intense activity one moment, followed by serious stagnation the next. The crises in the country, political fluctuations, and credit costs are creating problems for us. That's why we take care to maintain open communication and transparency with our customers. Due to the risks involved in payment methods, we may have to ask for support in terms of shorter maturities and cash payments.
How do you assess the competition caused by imports?
Import is a reality in this sector and, of course, it intensifies competition. There are competitively priced products coming from many countries, primarily China and Indonesia. At this point, to make a difference, it's not just about price; service quality, honesty, and trust are crucial. At YFO, we place great importance on these three things. The loyalty of our long-standing customers actually demonstrates this.
The ongoing antidumping duty investigation against imports from China and Indonesia is expected to conclude soon. What will be the impact on the market?
I believe the outcome of the investigation will have a significant impact on the market. It may open up a new cost channel for importing companies. Overall, it seems that the price balances in the market will be reshaped. The real problem is that there is still no production in Turkey.
Can we learn about your position and goals in export markets?
Export is a growing area for us. We are currently responding more to regional demands, but in the medium term we aim to be more active in the European and North African markets. This year, we started building a stronger structure in exports by improving our logistics solutions and documentation processes.
Can you tell us about your new investments?
This year, we have made investments to digitize our business processes. We have switched to a new software infrastructure to better track customer orders and inventory management. We are also considering investing in a new warehouse space. We are constantly updating ourselves to provide faster and more reliable service to our customers.
How do you interpret the protectionist policies spreading around the world?
Protectionist policies affect the sector like a double-edged sword. While they aim to protect local production, they can also create pressures that run counter to the nature of trade. At YFO Foreign Trade, we believe in moving forward with quality products, fair prices and honest trade, regardless of the conditions.
How are current economic conditions affecting the market?
Currency and inflation pressures are affecting all of us. Cost calculations are being redone every day. Collection has become as important as sales. In these conditions, it is invaluable to be sensible and take steps without panicking. We see this period as a ‘time to strengthen, not protect’.
How is 2025 going and what are your expectations for the rest of the year?
2025 has been a challenging but instructive year. We generally took a cautious approach in the first six months. We expect more activity in the domestic market for the remainder of the year. But our main goal is to grow our export business. As YFO, we want to continue to be a boutique but reliable player by building strong relationships. At this point, we believe in the strength and growth potential of our YFO TRADING – CYPRUS structure.