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What awaits in the raw material market after the earthquake in Turkey?

Global steel markets started to write their predictions after the Kahramanmaraş-based earthquakes that shook Turkey. Resources…

What awaits in the raw material market after the earthquake in Turkey?

After the earthquake that shook Turkey, affecting 10 of our Kahramanmaraş-centered provinces, foreign sources made various evaluations about Turkey's steel production and demands. According to the information compiled by the SteelRadar correspondent, the projections were given in foreign sources as follows;

“The tragedy experienced in Turkey and Syria, where a devastating earthquake occurred on the night of February the 6th, deeply affected Turkish metallurgy.

Many mills have suspended their operations, problems in the domestic and export supply of steel products may continue for the next few weeks and perhaps until April-May. Scrap metal import purchases of Turkish companies have been temporarily suspended.

Iskenderun was heavily damaged, where Turkey's largest facilities and the port are located. In addition to the fact that there was no damage that would affect the operation of our factories in the region and its immediate surroundings, the factory personnel and relatives of many officials were affected by the earthquake. Due to the pain and harsh weather conditions, the factories paused their production while opening their doors to the citizens affected by the earthquake. While research on its activities continues, it is heard that the production wing has not been activated yet. While the whole of Turkey is experiencing the deep pain of our earthquake victims and the region, the developments regarding the recovery processes are on the agenda of the Turkish and world press. Our country, which ranks eighth in world crude steel production, continues to be frequently included in the projections of foreign sources regarding the reasons that may arise from possible developments.

According to another source, the predictions were given as follows;

Developments that will affect the steel industry; Other developments in Turkey may vary depending on how quickly the country and its economy recover from the shock. Large-scale restoration works should be started as soon as possible in the earthquake-affected areas, and the demand for metal there should increase significantly. So far, the events in Turkey have caused the scrap cost to decrease only in European ports, while the increase continues in other regional markets.

According to the local calendar, the recovery may have started in China, which saw a decline in stock market quotes for steel products right after the New Year's Eve. In any case, there has been a slight increase in prices in recent days. The same is happening with the prices of iron ore and coking coal. However, it is too early to talk about the emergence of a clear uptrend.

Another different Russian source is;

The source says they do not expect a significant increase in steel demand in Turkey in the near future and are cautiously assessing the possibility of an increase in supply in the long term.

Due to a strong earthquake, Turkey is experiencing problems with its smelting capacity. The facilities located in the affected region of the country account for at least 25% of the steel production in Turkey. Turkey is the largest export market for Russian rolled steel. In the longer term, as homes and infrastructure damaged in the earthquake are restored, some sources point out that while Russian metal deliveries to Turkey are expected to increase, export volumes will depend on how soon Turkey's metallurgical capacities return to operation. According to a different view, Turkish metallurgists are thought to be confident that they will cover the growth of domestic consumption because their capacity is high.

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