Turkish steel producer Koc Metalurji, is restarting production on June 15, ahead of the schedule announced previously.
The steelmaker had previously announced it would resume operations sometime in July.
Koc Metalurji will restart at an 85pc capacity utilization amid a strong domestic and export market outlook for Turkish mills that is showing positive momentum for H2 2020, Davis Index learned from the company and market participants.
The mill had temporarily idled its crude steel production on April 7 for one month with the potential for a three-month extension due to COVID-19 related restrictions that resulted in weak demand. The company initially set the restart schedule for mid-June but extended it to July on concerns of insufficient rebar demand.
Most recently, Koc Metalurji purchased 21,000mt of HMS 1&2 (80:20) at $265/mt cfr Turkey from Russia, along with 8,000mt of bonus material at $275/mt cfr and 1,000mt of rails at $280/mt cfr. Scrap import prices have increased from $259/mt cfr Turkey for 21,000mt of HMS 1&2 (90:10) in early June.
The 1.2mn mt crude steel annual capacity mill in Iskenderun was previously idled for two months in October and November 2019 and restarted in the first week of December at approximately 50pc capacity utilization.
The mill also halted operations throughout January 2019 during a scheduled maintenance. Koc Metalurji has a 550,000mt rebar production capacity in its rolling plant.