Turkey’s MMK Metalurji, one of the several key coated steel suppliers in the country, plans to restart its hot rolled coil production, which has long been idle. One reason is the necessity to secure its own needs and to sell HRC domestically while local HRC supply in Turkey is currently limited. Another reason is that its own feedstock production is more advantageous compared to the manageable import options.
The Iskenderun region-based MMK Metalurji plans to restart its 2.3 million mt per year EAF-based meltshop from April 1 this year, following a long-standing facility stoppage, partly related to sanctions against Russia. According to sources, the company has already started to collect orders for April-May production HRC and has been working on securing the required scrap volumes in addition to existing stocks.
The market sources believe it is logical for MMK Metalurji to restart HRC output, while having this opportunity unlike the majority of the re-rollers in Turkey who have to source their feedstock in the domestic or import segments. Currently, local HRC in Turkey is evaluated at $830-860/mt ex-works (down $10-20/mt over the past week), while the average cost of production from scrap to HRC is estimated by market players at around $250-280/mt depending on the mill and its scrap stock, and up to $300/mt for those who use more BPI and HBI in their mix.
As for the import HRC prices available in Turkey specifically from Russia, some suppliers are reported to be offering at $765-770/mt CFR, while some at $800/mt CFR and above. No fresh deals have been reported.