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[Ferro-Alloys.com] 2 major Turkish steel companies have reported severe erosion in profits in Q3 due to a shrinking domestic market, trade wars, concerns over global economic growth and a sharp fall in product prices. The third quarter net profits of Erdemir and Kardemir were down 41% and 18% respectively. Erdemir’s EBITDA margin in Q3 eroded to 19.7% YoY from 32.2% and Kardemir’s narrowed to 9.5% YoY from 37.9%. The decline in their profits was caused by sharp contractions in the construction, home appliances and automotive sectors, the main markets for the steel sector, as well a drop in steel prices despite rising iron ore prices.

According to data from the Turkish Steel Producers Association, steel product consumption in Turkey declined 25.8% to 18.9 million tonnes in the first nine months of the year. (STEELGURU)

• [Editor:kangmingfei]