Turkish mills’ domestic scrap procurement prices decrease on dollar basis

Since SteelOrbis’ report published on November 17, Turkey’s Central Bank has announced a cut in interest rates, resulting in the Turkish lira depreciating against the US dollar to record levels. In this context, some Turkish producers have increased their domestic scrap prices by TRY 60-435/mt, while once again the rise has not resulted in a similar increase in dollar-based prices. The lower end saw a $3-16/mt decrease, while the upper end of the upward revision resulted in a $5-20/mt increase on dollar basis. Mills which maintained their local scrap procurement prices stable in their local currency decreased their dollar-based prices by $17-22/mt. 

As a result, the general range in the local Turkish scrap market for the benchmark DKP grade scrap has increased on the upper end from TRY 4,440-5,235/mt to TRY 4,440-5,430/mt, while on US dollar basis they have been revised down from $420-495/mt to $401-490/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 11.08