Local Turkish scrap market fluctuates in line with exchange rate

Since SteelOrbis’ report published on December 17, Turkish mills have followed diverse strategies regarding their domestic scrap procurement prices to offset the impact of the fluctuating Turkish lira-US dollar exchange rate. With the sharp appreciation of the lira against the major currencies over the past 24 hours, the dollar-based quotations of all producers have increased. Some producers have increased their domestic scrap purchase prices by TRY 50-1,000/mt, with a $127-193/mt rise in the dollar-equivalent price. Some mills have decreased their prices by TRY 700-1,230/mt, with a $26-74/mt increase in dollar prices. Other producers have kept their prices stable on Turkish lira, with a $109-118/mt increase in their prices on dollar basis.

The general range in the local Turkish scrap market for the benchmark DKP grade scrap has changed from TRY 5,700-7,050/mt to TRY 5,250-7,600/mt, while on US dollar basis they have been revised from $337-417/mt to $411-595/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 12.77