February 6, 2022
By Qvintin Koister & Myst Metals Team
On Monday February 6th, central Turkey and northwest Syria were rocked by a 7.8 magnitude earthquake. Entire city-blocks of residential apartments have collapsed, impacting thousands of lives in the region. Infrastructure has also been damaged including reports of a fire breaking out at the main port in Iskenderun.

Turkey is a significant economy and plays an important role in the commodity markets. Perhaps their most significant role is in the global steel-scrap markets as they are the largest importer of steel-scrap in the world and a major exporter of finished steel products.
Below is a brief in graphics and data of Turkey's role in the steel markets.

The relevant product spreads [Turkish Finished Steel Futures – Turkish Steel Scrap Futures] rallied 7.2% today in wake of the tragedy.

Reports of damage to ports and pipelines have trickled in, however, we are still awaiting updates from most of the major steel makers in the region. A large amount of Turkey's capacity is in Iskenderun, which is near the epicenter of the quake. It may take several days for clear operating reports from facilities in that area. It is worth noting that the Electric Arc Furnaces use steel scrap as an input.




Myst Capital offers market insights and commentary. Our market insights are intended to simply be insights, commentary and research for those who are interested in this information. This research is not a solicitation for investment with Myst Capital nor should such market research be construed as trading advice to buy or sell any specific financial investment. The above commentary, insights, and research may or may not fully represent the opinions of the entire Myst Capital team and is not intended to be indicative of any investments.
Myst Capital Management LLC is dually registered in The United States with the Commodity Futures Trading Commission (“CFTC”) as a Commodity Pool Operator and Commodity Trading Advisor and is a member of the National Futures Association. This document is for informational purpose only and is in no way a solicitation of an offer to sell securities or investment advisory services.
Futures trading involves substantial risk of loss. Past performance is not indicative of future results.
The data in this document is gathered and sourced by Myst Capital unless otherwise stated. All data and information in this document is property of Myst Capital Management LLC or Myst Capital Group LLC unless otherwise noted.
Distribution of this document or data is strictly prohibited without the written consent of the Myst Capital Management team.
Comments