Local Turkish scrap market decline over past two weeks

Turkish steelmakers have cut their domestic scrap purchase prices over the past two weeks, with a $13/mt drop on the lower end and a $6/mt decline on the upper end in dollar prices. While several producers have announced price reductions of TRY 70-400/mt ($5-14/mt), the depreciation of the Turkish lira has deepened the fall in dollar-based prices. The producers that decided to keep their lira-based prices stable in this period dropped their dollar-based prices by $2-3/mt. On November 29, the Turkish lira-US dollar exchange rate was $1 = TRY 34.69 and the changes shared above are calculated including exchange rate movements. This last decline in prices is considered a delayed impact of previous declines in the international scrap market. Since deep sea scrap prices in Turkey are now moving up, domestic scrap may also be corrected upwards in the coming week.

After the price revisions, the general range in the local Turkish scrap market for the benchmark DKP grade scrap declined from TRY 11,750-12,875/mt in the local currency to TRY 11,400-12,750/mt. The dollar-based prices have also moved down, from $339-371/mt to $326-365/mt.

All above prices are for deliveries to customer and exclude VAT. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.

$1 = TRY 34.94