Turkish Met Coke Producer Aims to Increase Production in Second Half of 2019

Turkish conglomerate Yildirim plans to increase its Colombian metallurgical coke output and shipments during July-December 2019, aiming to supply met coke to steelmakers in Turkey and Europe.

The firm's Colombian subsidiary, Yilcoque, aims to produce and export 15,000 MT/month of met coke in the second half of 2019, up from a current rate of 14,000-14,500 MT/month.
"Currently, met coke production is used for our internal consumption. The coke produced is used by Turkey, Sweden, and Russian plants. In the second half of the year, we plan to also reach third-party steel plants in Europe and Turkey," one of the company official mentioned.

Yilcoque operates 400 ovens in the northwest province of Norte de Santander that produces around 11,500 MT/year met coke, while sourcing additional required tonnes of met coke from third parties. The company exports 18,000 MT met coke cargoes every 40-45 days, comprising three types of coke.

An increase in met coke output will require Yilcoque to increase its coking coal purchasing to 25,000-26,000 MT/month from 23,000-23,500 MT/month. The company sources its coking coal from small local mining companies.

The drop in seaborne met coke prices since November has put pressure on the Colombian market, with domestic prices for mid-volatile coking coal at USD 68.60/MT, down by 44% compared with a year earlier. Several market participants have recently described a drop in Colombian met coke production owing to the fall in prices since late 2018. But Yilcoque said it continues to produce at full capacity.