Turkish rebar producer Izmir Demir elik Sanayi A. . (IDC) has announced its financial results for the second quarter and the first half of 2013, stating that for the coming period China's policies regarding capacity utilization rates and the political uncertainty across the world remain the key issues for Turkish steel industry. Improved demand in the domestic market drives the producers, and urban transformation and lower interest rates limit the impact of the export contraction. In the second half, IDC expects an upward trend in the markets, if confidence is restored in neighboring countries and if global economic indicators keep improving.
In the second quarter, IDC registered a net loss of TRY 36.8 million ($18.4 million), compared to a net loss of TRY 8.1 million in the first quarter of the previous year. The company's sales revenues decreased by a slight margin of 0.7 percent year on year to TRY 425.5 million ($212.7 million). In the given quarter, IDC recorded an operating loss of TRY 23.14 million ($11.6 million), compared to an operating loss of TRY 10.6 million in the corresponding quarter of 2012.
During the first six months of the current year, IDC saw a net loss of TRY 47.9 million ($23.9 million), compared to net profit of TRY 1.35 million in the corresponding period of 2012. IDC's sales revenues declined by 11.8 percent year on year to TRY 808.4 million ($404.2 million). In the first half, the company registered an operating loss of TRY 34 million ($17 million), compared to an operating loss of TRY 9.91 million in the corresponding period of the previous year.
IDC has said that in the first half it increased both its steel billet and rebar production by 1.31 percent and 1.66 percent respectively on year-on-year basis, with its steel billet output reaching 719,870 mt and its rebar production increasing to 482,452 mt. Besides, 188,150 mt of rebar was also produced by the company's contractual partners in the given period.
In the first half, IDC recorded a two percent year-on-year increase in its finished steel sales, amounting to 701,310 mt, while its steel billet sales totaled 21,205 mt. In the meantime, in the given period IDC's finished steel exports amounted to 419,545 mt, falling by 15 percent as compared to the corresponding period of the previous year.
