Twice earthquakes with magnitude 7.8 on the Richter scale occurred in Turkey on February 6, 2023, with the epicenter located in the Eastern part of the Anatolian Fault near Syria in the south of Turkey.
Turkonfed pointed out on February 12 that the earthquake might cause more than $84 billion of economic losses in Turkey (about $70.8 billion of housing construction damage, $10.4 billion of national income loss, and $2.9 billion of economic losses due to labor losses), accounting for about 10% of GDP.
The epicenter of this earthquake was located in the south of Turkey, while copper mines in Turkey are mainly in the north and east, so the impact on copper concentrate supply was quite limited. The four main copper mines in the north are Kure, Cayeli, Murgul and Ceratepe, and the two main copper mines in the east are Ergani and Siirt Madenkoy. Copper smelters, such as Samsun smelter, the largest modern copper smelter in Turkey and with an annual capacity of 700,00 tonnes of copper cathode, are also mainly located in the north and east. So far, no information has been received about the impact of the earthquake on Turkey's smelters, while Mysteel will continue to follow up.
Turkey's copper concentrate output decreased by 4.4% year on year to 109,000 tonnes (metal contained) in 2022. Meanwhile, China imported 107,000 tonnes of copper concentrate from Turkey in 2022, which only accounted for 0.42% of the total import volume, so the impact of the earthquakes on China's copper concentrate import should be small.
According to General Administration of Customs of the People's Republic of China (GACC), China imported 386,265 tonnes of copper concentrate, 77,337 tonnes of blister copper, and 4,646 tonnes of refined copper from Turkey in the past five years, accounting for 0.34%, 1.62%, and 0.02% of the total imports respectively. China didn't export copper concentrate, blister copper, or refined copper to Turkey in the past five years. Although most of Turkey's copper products are exported to China, the impact was limited due to its low proportion.
Although Turkey's Iskenderun Port has suspended its business due to serious damage in the earthquake, Turkey's nonferrous metals account for a very tiny proportion of the global market in terms of output, demand, import, and export.
Data Source: GACC
Data Source: GACC
Data Source: GACC
Written by Edenlis Huang, huangting@mysteel.com
Edited by Paula Xu, xuzhongping@mysteel.com