Turkey’s IDC posts loss in 2009, expects markets to improve in 2010

Turkish rebar producer Izmir Demir Çelik Sanayi A.S. (IDC) has announced its operational results for 2009.
 
According to the statement from IDC, the company's consolidated loss for 2009 totaled TRY 10.15 million ($6.81 million), compared to a net profit of TRY 131.59 million in 2008. In the year in question, IDC's sales revenues declined by 47.95 percent year on year to TRY 727.45 million ($488.36 million).
 
Commenting on the results, IDC chairman Halil Sahin said, "Due to demand contraction in foreign markets, rising uncertainties and decline in shipping volumes during the crisis period, our company switched to a more flexible production model, in order to minimize adverse effects of the crisis and to assure the continuation of operations. Moreover, against the risk of continuing unfavorable market conditions for long products, research has been initiated to enable us to switch to production of different products at the existing plant."
 
In 2009, IDC produced 1,097,662 mt of steel billets, down 1.94 percent, and 761,235 mt of rebar, down 16.56 percent, both compared to 2008. In the year in question, the production capacity usage of the company's rolling mill was 84.58 percent, while its melt shop operated at 83.16 percent capacity, decreasing by 16.79 percent and 1.65 percent respectively compared to the previous year.
 
In 2009, the company sold 49,466 metric tons of semi-finished products and 948,638 metric tons of finished products, while the company's total exports amounted to 686,713 metric tons, down 38 percent year on year, including 20.851 metric tons of billets and 665,862 metric tons of rebar. Its exports accounted for 72 percent of its total sales.
 
Regarding the 2010 outlook, IDC said that it expects demand from the Middle East, Gulf and North Africa to continue to be relatively higher compared to other markets. The company also foresees that local demand will rise, that the US steel market will improve, while prices will increase.