Earthquake damage at Iskenderun port continues to affect shipments

Shipping operations at the major Turkish port of Iskenderun continue to be affected following the major earthquakes in the region Feb. 6, with damage assessments at the port continuing Feb. 7.

Logistics company Maersk said in a Feb. 7 statement that Iskenderun Port was significantly damaged and a subsequent fire broke out among containers at the terminal following the earthquake.

"It's not yet known how long recovery efforts will take and when the port can undergo a full inspection of the damage. At this time, we are not accepting any new bookings to and from Iskenderun," the company said.

The operator of the port, Limak Holding, said damage assessments were ongoing.

Iskenderun is one of the largest container ports in the Eastern Mediterranean region, with a capacity of over 1 million TEU/year and dry bulk capacity of 2.5 million mt/year.

Steel mills continued to be impacted by damage to some highways and ports, as well as the lack of natural gas flow and electricity in the affected regions.

Large steelmakers in the impacted regions had also been focusing more on rescue efforts.

MMK Metalurji, the Turkish subsidiary of Russian steelmaker Magnitogorsk Iron & Steel Works, said Feb. 7 it had opened its doors to workers and their families affected by the earthquake.

Mills in the region were expected to remain closed for a while, amid energy cuts and damage to ports and highways, which could impact scrap and steel pricing, as the mills located in the region produce at least around 25% of Turkey's steel production, according to S&P Global Commodity Insights' calculations.

Platts, part of S&P Global, assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) at $427.50/mt CFR Feb. 6, while assessment for Turkish exported rebar was at $700/mt FOB, both stable on the day.