Local Turkish scrap market softens on the upper end

Since SteelOrbis’ report published on September 9, most Turkish mills reduced their domestic scrap procurement prices. The reduction in local Turkish scrap market was at TRY 50-450/mt, the lower end caused no change on dollar based prices but the mid to upper end of the reduction caused $3-25/mt fall over the past week. While the depreciation of the Turkish lira against the US dollar continued with a very slow pace, the sideways movement observed in the local scrap procurement prices of some mills caused no change on dollar based quotations. A mill reported that “Since mills are reducing production rates, the consumption of domestic or import scrap is also slowing down, resulting in lower procurement quotations.”

As a result, the general range in the local Turkish scrap market for the benchmark DKP grade scrap has declined from TRY 6,000-7,350/mt ($329-403/mt) to TRY 6,000-7,030/mt ($329-385/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 18.26