Turkish ferrous metals trading was suspended on Monday as the country took stock of the 7.8 magnitude earthquake that hit at 04:17 local time near the city of Gaziantep, one of the largest earthquakes ever recorded in Turkey.
p>Thoughts from everyone in the industry were with those affected by the tremors that also affected neighboring Syria and led to a second quake further north later on Monday. The total death toll has reached 2,700 at the time of writing and is expected to rise. Turkish President Recep Tayyip Erdogan declared seven days of national mourning until February 12.
The incident was so fresh that it was impossible to unambiguously assess its impact on the steel market. Various sources tried to piece together what might follow.
Sources in Turkey said that factories in Iskenderun, the area hit by the earthquake, were not seriously affected, but companies were trying to find some missing employees. Meanwhile, the port of Iskenderun has reportedly stopped operations due to damage.
While factories appear to be intact, truck availability will be a problem for weeks after the quake, meaning prices for everything , especially for scrap metal, will grow, as some sources indicate. In the meantime, an international trader said that a long disruption to exports from Turkey is expected.
Buyers in other major scrap importing regions have also been watching the situation. The Indian participants intended to start booking for April flights, but the earthquake in Turkey stopped them on their way. As deliveries to Pakistan and Bangladesh are already cut off due to funding issues, sellers will try to back off scrap offers to secure orders in India, according to sources in the subcontinent.
The coming days should bring more clarity, but on the moment the industry's thoughts are affected.
