Koc Metalurji, one of the key square billet producers in Turkey’s Iskenderun region, is considering the temporary suspension of its crude steel output.
According to sources, Koc Metalurji might stop its 1.2 million mt per year crude steel facility from the end of September until January 2020, unless some improvement in business conditions is seen. The key reason is the currently unfavorble market situation both in terms of demand for finished steel and on the production cost side. In the meantime, Koc Metalurji will be focusing on trade operations, according to the company’s representative.
Koc Metalurji had implemented a stoppage at the beginning of the current year for a couple of months. In addition, the company carried out long maintenance works during the summer. “The market is not good and business is becoming more and more risky. Sometimes it is better not to produce rather than sell at a loss,” a trading source commented. The company also operates a 550,000 mt per year rebar rolling line, which may remain partly utilized with usage of billet from stocks, SteelOrbis understands.