Production at Turkey’s OYAK Mining Metallurgy Group decreased in the first six months of 2020 due to the COVID-19 pandemic.
According to the company’s official earnings report for the period, steel consumption in Turkey grew 9pc to 13.4mn mt in H1 2020 compared with the same period last year. However, crude steel output in the country dropped by 4pc to 16.3mn mt from 17mn mt during the same period under comparison.
OYAK’s total crude steel production declined by 5.9pc to 4.17mn mt in H1 2020 compared with H1 2019, despite a 14.2pc increase to 1.84mn mt at its Eregli plant. Output at the company’s Iskenderun facility declined by 17.4pc to 2.33mn mt during the same six months.
Capacity utilization to produce steel and crude steel also fell during the period to 88pc and 87pc from 94pc and 93pc, respectively.
Flat products’ output declined to 3.55mn mt during the first six months of the year from 3.74mn mt in H1 2019, while long products’ output fell to 450,000mt from 522,000mt during the same six months under comparison.
The company’s consolidated flat product sales reached 3.5mn mt in H1 2020, with domestic sales declining by 4pc to 2.8mn mt during the first six months of the year compared with H1 2019. Total long product sales dropped by 16pc to 453,000mt in H1 2020 from the same prior-year period, while domestic sales increased by 6pc to 419,000mt.
The Group exported a total of 721,000mt of finished products, including 687,000mt of flats and 34,000mt of longs products. It exports flat products to 35 countries and long products to nine countries.
OYAK’s sales revenue amounted to TRY13.78bn in January-June 2020 versus TRY14.59bn in H1 2019. The Group’s gross profit was TRY2.07bn.
($1 = TRY7.32)