Turkish CRC prices to rise
----Interview with Ahmet Demirel
Managing Director
Dema Metal Ltd.
Managing Director
Dema Metal Ltd.
Founded in 1973, Dema Metal Ltd. has been engaged in the steel business both domestically and internationally for over 50 years. The company firmly believes that quality improvement is the key to securing its future. With each successfully completed project, Dema Metal Ltd. continues to expand its market share both at home and abroad, experiencing exponential growth year after year.
Asian Metal: Good morning, Mr. Demirel. Welcome to this interview with Asian Metal. Could you start by briefly introducing your company?
Mr. Demirel: My pleasure. Dema Metal Ltd. is a family-owned business located in Kayseri, Turkey. We have been in the steel industry since 1973. Our warehouse is in Eregli, home to Turkey's largest integrated steel mill, Eregli Demir Celik Factory. We regularly procure raw materials from Eregli Demir Celik Factory as well as other mills in the western part of Turkey. We maintain stock and deliver materials according to our customers' needs. Our product range includes flat steel, such as CRC, HGI coil, HRC, and pickling coil, among others. In 2024, we sold approximately 38,000 tons of steel.
Asian Metal: Which domestic steel mills do you collaborate with? How about your customer base?
Mr. Demirel: We primarily work with Eregli Demir Celik Factory, Tat Metal, Borcelik Steel, Colakoglu Steel, and Yildiz Steel. Among them, only Eregli Demir Celik Factory operates blast furnaces and produces steel from iron ore, whereas the others manufacture CRC, HGI coil, and pre-painted materials using scrap or HRC. Our customers include manufacturers of home appliances, doors, and automobiles.
Asian Metal: Since 2017, the Turkish government has imposed various import taxes on steel. On October 11, 2024, Turkey's Ministry of Commerce announced anti-dumping tariffs on HRC imports from China, India, Russia, and Japan, ranging from 6.1% to 43.43%. What is the current state of steel imports?
Mr. Demirel: The Turkish government has also launched new anti-dumping investigations on steel imports from China and South Korea, similar to measures taken by the U.S., Europe, and other countries to protect domestic steel industries. In the first three quarters of 2024, Turkey's HRC imports dropped by 1 million tons to 3.14 million tons. The newly implemented anti-dumping policies boosted market confidence, leading to a USD 30/t increase in CRC prices, reaching USD 735/t at the beginning of Q4. However, due to weak demand in November and December, prices fell again, ending at USD 680/t by late December, down USD 20/t from early October. Currently, only steel producers such as Tat Metal and Yildiz Steel import HRC from China, India, and Russia. They process it into CRC, HGI coil, and pre-painted coils for export. If the final products are exported, these companies are exempt from paying import duties and anti-dumping tariffs on the raw materials they import.
Asian Metal: Could you provide an overview of CRC production in Turkey in 2024? How does it compare to 2023?
Mr. Demirel: Turkey has six major steel mills producing CRC: Eregli Demir Celik Factory, Yildiz Demir Celik, Borcelik Steel, Gazi D.C., Tosyali D.C., and Tat D.C. Eregli Demir Celik Factory is the largest, producing finished steel from iron ore and supplying slabs and HRC to other mills that manufacture CRC and HGI coil. In 2023, Turkey faced a major earthquake, which significantly reduced CRC production. In 2024, production returned to normal, increasing by approximately 17% year-on-year. Additionally, mills expanded their production capacities.
Asian Metal: What is the current demand for CRC in Turkey?
Mr. Demirel: Overall, CRC demand remained weak in 2024, declining by approximately 25% compared to 2023. Typically, Turkish mills export about 50% of their steel-based products to Europe each year. However, in 2024, downstream industries such as home appliance and automobile manufacturers struggled to maintain regular export levels due to economic challenges in Europe. Furthermore, steel prices in China, South Korea, Vietnam, and India were significantly lower than those in Turkey, making it difficult for Turkish mills to compete in European markets.
