Posted on 08 Sep 2022
Turkish steelmakers are estimated to have decreased production by just over 5pc month on month in September, bringing overall estimated Turkish steel production rates down to around 50pc of capacity.
A combination of weak steel demand and tight scrap supply in the second half of August pushed Turkish steelmakers to prepare for further production cuts in September. A 50pc increase in electricity and gas prices on 1 September may result in further production cuts, depending on how steel demand reacts and how scrap supply fundamentals develop through the first half of the month.
An Izmir mill's announcement on 4 September to reduce its total steel production rate to 33.3pc is understood to have been made in response to the significant energy price increase.
Details of all major Turkish steel mills' production plans bar two were heard at the end of last week. A Samsun mill will work two shifts for 15 days in September and will not produce during the other 15 days.
An Iskenderun mill will fully stop for five days in September.
A second Iskenderun mill will fully stop for 15 days in September from 3 September. An Izmir mill and a Marmara mill both have one of their three furnaces down, with the other two furnaces for both companies estimated to be running at 55-60pc.
A third Iskenderun mill will run at half capacity throughout September.
A fourth Iskenderun mill shut down its slab furnace at the beginning of September. The duration of this closure is not known.
Two Marmara mills are actually increasing production in September. Both halted output for maintenance in August. One of those mills restarted production on 1 September and the other will be back on line on 15 September.
Source:Argus Media
