Goldman with the note.
Following the devastating Turkey earthquake and given the importance of the region to global steel markets, we review impacts to the global steel supply chain. At this point, there are no reports of notable damage to steel mills in the region, however we highlight likely supply chain disruptions, particularly given damage at theIskenderun port.
Accordingly, we see potential for scrap cargoes to remain stranded on water awaiting delivery (which could pressure scrap prices), and for Turkish steel exports to be disrupted (which could support long products pricing). We highlight that Turkey is the largest consumer of US scrap exports, accounting for ~20% of annual shipments. While Turkey’s finished steel exports into the US accounted for only 4%of 2022 imports, we note that the region accounted for 7% of long products imports.
