Turkish mills’ scrap procurement prices move up

Turkey’s domestic scrap procurement prices have inched up on the upper end this week as some Turkish mills try to compensate the depreciation of the Turkish lira against the US dollar. As a result, an increase of TRY 250-500/mt has been announced by some mills that reflected the dollar-based quotations as a $4-11/mt upward movement. The rest of the lira-based prices have remained stable over the past week, resulting in a $2/mt drop week on week. The stability reached in the import scrap segment would normally support a sideways movement in the local scrap market, but if the depreciation of the Turkish lira continues in the coming weeks, some Turkish mills would like to announce a price increase to maintain the flow of scrap to their yards.

Over the past week, the general range in the local Turkish scrap market for the benchmark DKP grade scrap has moved up by TRY 300/mt on the upper end to the range of TRY 12,400-14,000/mt. Due to the fluctuations observed in the exchange rate, the dollar-based quotations have changed from $307-339/mt to $305-344/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 40.65