Turkish steel producer, Erdemir Group reported a 9.4pct YoY decline in profitability in the first quarter of 2026, according to its latest financial results.
Net profit fell to TRY 405.8 mln (USD 9.0 mln) from TRY 447.9 mln a year earlier. Revenue increased by 11.4pct YoY to TRY 59.68 bln (USD 1.32 bln), indicating stronger sales performance.
Crude steel production rose by 21pct YoY to 2.3 mln tons in Q1 2026, supported by higher capacity utilization, which increased to 96pct from 79pct in the same period last year. Output at the Iskenderun plant reached 1.4 mln tons, while the Eregli facility produced 0.9 mln tons.
Flat steel production increased by 8.8pct YoY to 1.85 mln tons, while long steel output rose by 32.5pct YoY to 265,000 tons.
Flat product sales totaled 1.89 mln tons, up 9.4pct YoY, with domestic sales at 1.6 mln tons. Long product sales reached 235,000 tons, compared with 176,000 tons a year earlier, with most volumes sold in the domestic market.
Total exports stood at 312,000 tons in Q1, accounting for around 15pct of total sales. The company said it aims to maintain exports in the 10-15pct range, with continued focus on the domestic market.
The company said demand in the Turkish market is expected to remain firm amid ongoing global uncertainties and shifts in trade flows. It added that Turkey’s geographical advantage supports competitiveness.
Erdemir also noted that following recent capacity expansions completed in 2025, production and sales have normalized, with quarterly sales reaching 2.1 mln tons. The company targets annual sales of over 8.2 mln tons in 2026.
Looking ahead, the group expects higher costs in Q2 2026 due to increased energy, freight and insurance expenses, although these are expected to be offset by higher selling prices.
Erdemir Group’s main products include billet, slab, wire rod, hot rolled, cold rolled, and coated steel products.
1 USD / 45.1 TRY