The damage caused by the devastating earthquakes in Turkey on February 6, with the epicenter in Kahramanmaras, severely impacting 10 neighboring cities, has caused natural gas and electricity supply cuts in the region. Steel production has become impossible under the current conditions. İskenderun-based Isdemir has announced that due diligence inspections are continuing and that production has been suspended until the work is completed.
It is foreseen that steel production in the region will not start until at least the end of this month, while electric arc furnaces may be commissioned earlier than blast furnaces, which may need a few more weeks to start operating, SteelOrbis understands. The region affected by the earthquake accounts for 25-30 percent of the country’s total annual steel production, and, according to preliminary assessments, there is no major damage to the local steelmaking plants. It is reported that steelmakers aim to restart production as quickly as possible once the current conditions improve. Under the current conditions, the country’s steel production will decline in February. Veysel Yayan, secretary general of the Turkish Steel Producers’ Association (TCUD), has told Bloomberg that steel producers in the other regions of Turkey will focus on meeting domestic demand rather than demand in the export markets.
According to the statement by the Port Operators Association of Turkey, there are no problems at ports other than at Limakport in Iskenderun, where a fire broke out in the container area after the earthquakes. However, as equipment has been shipped to shift rubble amid the current state of emergency, there is a shortage of equipment at ports, and detailed investigations at ports are required to determine damage. In the first days of the disaster, when logistics activities were interrupted, short sea scrap cargoes were redirected to other regions.
Meanwhile, the Turkish Enterprise and Business Confederation (TÜRKONFED has reported that workforce losses will cost the country’s economy $2.9 billion. As a result, the estimated economic toll stands at $84 billion, including damage to residential buildings and the loss in national income.
