Turkish rebar producer Izmir Demir Çelik Sanayi A.Ş. (IDC) has announced its financial results for the first nine months of 2019.
Accordingly, in the first nine months IDC registered a net loss of TRY 376.77 million ($65.43 million), compared to a net loss of TRY 641 million in the first nine months of 2018. In the same period, the company's sales revenues decreased by 8.9 percent year on year to TRY 3.11 billion ($540 million). IDC recorded an operating loss of TRY 178.07 million ($30.9 million) in the first half, compared to an operating loss of TRY 42.5 million in the same period of 2018.
IDC said that in the first nine months of the current year its steel billet output decreased by three percent to 903,363 mt, while its rebar production totaled 653,718 mt, falling 12 percent, both year on year. Besides, 120,395 mt of rebar was also produced by the company's contractual partners in the given period, with a year-on-year decrease of 50 percent. In the given period, the company produced 179,636 mt of steel sections, down eight percent year on year.
In the January-September period of 2019, IDC’s finished steel sales increased by 19.8 percent to 919,206 mt, while export sales increased by 5.87 percent to 271,947 mt, both year on year.
According to the company statement, during the first nine months, average finished steel prices were lower compared to the same period of the previous year. While finished steel prices were declining, raw material prices have not declined as much as finished steel prices. As costs other than raw material increased, margins saw sharp declines in the first nine months of 2019, the company noted.