Turkey’s largest steelmaker Isdemir to restart production gradually

Turkey’s largest integrated long and flat steelmaker Iskenderun Demir ve Celik, or Isdemir, which suspended its production in Southeastern Turkey for due diligence studies after the Feb. 6 earthquakes, said Feb. 18 that it was aiming to restart production gradually.

“Process-based works at the facilities are continuing in order for our company to start production again,” the company said, adding that the amount of the damage is not at a level that will significantly affect the financial statements of the company.

“It is planned to restart production in a gradual and controlled manner after the works are completed,” Isdemir said in a regulatory filing to the public disclosure platform seen by S&P Global Commodity Insights.

Following the company’s statement, Isdemir equities resumed trading again at the Istanbul stock exchange Feb. 20 after a two week break due to the Feb. 16 earthquakes that hit Southeastern Turkey, where Isdemir is located.

Isdemir has the capacity to produce 5.8 million mt/year liquid steel, 3.5 million mt/year flat steel, 2.5 million mt/year billet and 600,000 mt year wire rod.

Some other Turkish steelmakers in the region, like MMK Metalurji and Koc Metalurji, also told S&P Global last week that they were aiming to restart production soon in a controlled manner.

The Turkish government’s demand from domestic producers to supply 4 million mt of rebar within four months for reconstruction works in the region accelerated the mills’ production restart efforts, according to sources.

Producer offer prices for flat steel have also risen to $800/mt ex-works and over in recent days amid higher demand and some availability issues, sources said.

Platts, part of S&P Global, assessed Turkish HRC at $800/mt ex-works Feb. 17, up 4.58% on the week.

— Cenk Can