Kardemir Karabuk Demir Celik Sanayi ve Ticaret A.S., a major Turkish producer of integrated long steel products, has announced its financial and operational results for the first half of 2024. The company has reported a substantial net loss of TRY 1.83 billion ($53.81 million), marking an increase from the TRY 1.59 billion net loss recorded during the same period in 2023. This worsening financial performance reflects ongoing challenges within the steel industry and broader economic pressures.
Kardemir’s sales revenues for the first half of 2024 experienced a significant decline, dropping by 22.6% year on year to TRY 24.30 billion ($714.47 million). This reduction in revenue is indicative of the tough market conditions the company is navigating, which have impacted its overall financial health. The operating results also reveal a troubling trend, with Kardemir registering an operating loss of TRY 253.52 million ($7.46 million). This is a stark contrast to the operating profit of TRY 436.76 million reported in the same period last year.
Despite these financial difficulties, Kardemir’s production volumes have remained relatively stable. The company produced 1.21 million metric tons of crude steel in the first half of 2024, which is nearly the same as the production figures from the previous year. Additionally, pig iron production totaled 1.12 million metric tons, marking a modest increase of 2.2% year on year. This steady production output contrasts with the company’s financial performance, suggesting that operational efficiencies might not be fully translating into improved financial results.
Sales volumes for Kardemir, however, saw a slight decrease of 2.4% year on year, totaling 1.06 million metric tons. This decrease in sales volume, coupled with declining revenues and increased losses, points to significant headwinds faced by the company in the current market environment.
The increased net loss and reduced revenues highlight the financial strain Kardemir is under, which may be attributed to a combination of lower steel prices, reduced demand, and broader economic challenges affecting the Turkish steel industry. The company’s struggles reflect broader trends in the global steel market, where fluctuations in demand and pricing pressures are impacting profitability for many producers.
