Turkey’s domestic scrap prices increase sharply on lira basis

Mills’ purchase prices in the local Turkish scrap market have increased sharply over the past two weeks. The upward adjustment in the market is the result of Turkish mills’ focus on buying domestic scrap as well as their efforts to compensate for the depreciation of the Turkish lira against the US dollar. Producers have increased their purchase prices by TRY 200-1,000/mt. However, the lower end of this rise has failed to compensate for the loss in the value of the lira, while the corresponding dollar-based prices have moved down by $1-2/mt or remained stable. The upper end of the increase in lira prices has been matched by rises of $1-16/mt in dollar-based prices. During the period in question, all Turkish mills have adjusted their prices upwards.

After the price revisions, the general range in the local Turkish scrap market for the benchmark DKP grade scrap has moved up from TRY 12,200-13,560/mt to TRY 13,200-14,200/mt. The dollar-based quotations have risen from $333-370/mt to $347-374/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 38.00