Market situation and Ozkan..Ugur Ozkan, Ozkan Demir Celik Sanayi AS.

Market situation and Ozkan..Ugur Ozkan, Ozkan Demir Celik Sanayi AS.

We had the opportunity to talk with Ugur Ozkan about his evaluations regarding market developments and one of Turkey's leading rolling mills, Ozkan Demir Celik AS. SteelOrbis : During last couple of months, decline in particularly scrap prices and certain easing in the market was seen. How do you think these developments affect merchant bars? U.Ozkan : Softening of scrap prices which started in Asian markets, and felt in Turkey as Turkish steel producers reduced their demand, caused certain price declines of mainly billets and, consequently, reinforcing bars in the market. Many producers had to revise their prices and bring down. However, the decrease seen in merchant bars was only half of the fall in scrap and reinforcing bar prices. Domestic demand is slow as it is believed that prices will keep their downward trend. Nevertheless, sales for export at $500/mt FOB can easily be effected. On the other hand, taking into consideration that Karabuk Demir Celik hasn't decreased itsprices of NPI and NPU materials for 260 and above sized, we think that no great difficulty is faced in selling these kind of materials. SteelOrbis : Can you give us some information about improvements in Ozkan Demir Celik? U.Ozkan : Ozkan Demir Celik has a section capacity of 700'000 ton per year. We make wide range of section exports to almost 40 countries. Lately, we have expanded our product range both in production and exports. The first production and export of 80-140 IPE and IPE A in Turkey was made by Ozkan Demir Celik San. AS. Furthermore, we have also made production and export basis NPU 1-4 inches. We are aiming to produce 150 and 150 x 90, 150 x 75 sized unequal angle within May this year, initially in Turkish private sector. Moreover, the auction held by Isdemir on March 31, 2004 for the sale of thin and mid sized section rolling mill was awarded to Ozkan Demir Celik and Kocaer Demir.