One of the largest metallurgical service centers in Turkey, Galva Metal, and a large steel company in Germany, Wuppermann Gmbh, ended their cooperation on January 8, which lasted more than 10 years, said Galva Metal President Tolga Kisacikoglu.
"Our partnership with the German steel manufacturer Wuppermann Gmbh ended with the buyout of 35% of our partner's shares," Kisacikoglu said, adding that the main reason for the separation is their different views on the future of the company.
"Although Galva Metal wants to invest and grow; they want to take a more cautious path. As a result, we have decided to part ways by consensus,” he said.
However, Galva Metal will continue commercial activities with Wuppermann, the chairman added.
Fluctuations in raw material and energy prices, as well as demand conditions put pressure on production volumes, sales and pricing of Turkish factories and warehouses during 2023.
According to the latest data from the Turkish Steel Association, steel production in Turkey decreased by 6.1% in January-November 2023 compared to the same period last year to 30.5 million tons.
The steel export/import coverage ratio of Turkey's steel industry fell to 55:100 in the first eleven months of 2023 from 92:100 a year earlier as volumes imports increased during this period by 18% compared to the same period last year to 16 million tons.
However, steel export volumes from Turkey in January-November 2023 decreased by 34% year on year to 9.4 million tons, and revenues from these exports fell significantly by 43.4% to $7.5 billion due to weak demand and intense competition in global markets.
Platts, part of S&P Global Commodity Insights, last estimated the price of hot-rolled steel in Turkey at $715/t ex-works on January 5, up $5/t from the week before, amid rising prices for imported scrap.
