MMK Metalurji, one of Russia's largest metallurgical companies, has announced that it will restart production at its plant in Turkey, which has the capacity to produce 2.2 million tons of hot rolled steel.
One of the reasons for the resumption of production is the need to meet its own needs and sell these products domestically, while local supplies are currently limited, and another reason is that own production is more profitable than imported options.
MMK Metalurji is preparing to restart its 2.3 Mtpa smelter in early April 2023 after a long production outage. According to sources, the company will start taking orders for hot rolled coil production in April-May and is working to secure the required scrap metal volumes in addition to existing stocks.
Currently, local production of hot rolled coil in Turkey is estimated at $830-860 per tonne (down $10-20 per tonne from last week), while the average cost of producing this product from scrap is estimated by market participants at around $250-280 per tonne, depending on the plant and scrap stocks.