Turkish mills adopt diverse strategies for local scrap purchase prices

Today, September 21, Turkish mills have adopted diverse strategies for their domestic scrap purchase prices. While Kroman increased its procurement quotations by TRY 230-240/mt ($23-24/mt), two mills decided to cut their domestic scrap purchase prices by TRY 90-100/mt or $14-15/mt, depending on grades. Other steelmakers have kept their quotations stable, resulting in a $2-4/mt decrease in their dollar-based prices amid the depreciation of the Turkish lira against major currencies. Meanwhile, Koc Metallurgy still does not accept local scrap and is planning to stay out of the market for some time.

Despite the changes announced today, the general range in the local Turkish scrap market for the benchmark DKP grade scrap is still stable in the local currency at TRY 3,520-4,240/mt. Amid the fluctuating exchange rate, the general price range on US dollar basis has settled at $409-490/mt, versus $410-494/mt reported by SteelOrbis on Friday, September 17.

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 8.66