Further reductions announced in local Turkish scrap market fail to disrupt sideways movement

Despite the reductions by a couple of mills, the general range of Turkey’s domestic scrap quotations remains stable once again this week. Following the recent downward revision observed in the import scrap segment, several Turkish mills announced cuts in their domestic scrap procurement prices. However, the upper and lower ends have remained stable over the weeks. Two producers have cut their quotations in the current week by TRY 200-250/mt or $6-8/mt. Turkish lira continues to lose strength against the US dollar, now standing at 34.05 to a dollar. Therefore, stable Turkish lira-based bids from Turkish mills for domestic scrap also mean their dollar-based quotations are moving down repeatedly. This week the decline was $1/mt. Since August 9, the general price range of DKP grades on dollar-basis in the local Turkish scrap market has moved down by $5-6/mt and this drop was merely caused by the depreciating Turkish lira.

General range in the local Turkish scrap market for the benchmark DKP grade scrap is still at TRY 11,800-13,150/mt in the local currency. Dollar-based quotations have moved down to $347-386/mt week on week from $347-387/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 34.05