Turkish domestic scrap prices continue to climb this week amid strong activity. All Turkish mills have increased their domestic scrap buying quotes since last week, Kallanish notes. 

Business activity in the domestic market is quite strong, with mills increasing their prices gradually.

Import values, meanwhile, remain firm. Although business activity is still weaker compared to the domestic market, suppliers are keeping their price targets high. Turkish producers are also convinced that imported scrap prices are unlikely to fall in the near future and are thus trying to buy as much as they can from the domestic market.

European suppliers are seen keeping their price targets at around $380/tonne cfr Turkey for HMS 1&2 80:20. With the euro strengthening further against the dollar, and dock prices rising, it is obvious that Turkish mills will have to pay a price above $375/t cfr for European material. After peaking at 1.04 per euro last month, the dollar stood at 1.085 on Wednesday.

A producer says he is afraid prices will hit the $400/t threshold by the end of the year. 

A supplier tells Kallanish: “There is no possibility that prices can soften. I believe Turkey will not be able to buy the next premium HMS 1&2 80:20 cargoes at below $385/t cfr. We are approaching $400/t levels quite fast."

Another supplier says that approaching the winter and holidays, the already tight supply situation will worsen further.

Demand in Turkey's domestic market is showing diverging trends, meanwhile. Although it was slow in some regions on Wednesday, it remained moderate in southern Turkey where reconstruction activities are progressing faster following February’s earthquake. Domestic rebar offers stood at $570-590/t ex-works on Wednesday.

Turkish shipbreaking scrap prices reached $370-372/t delivered on Wednesday following gradual hikes by mills in the west. This is up from $360/t a week earlier. The lira was at 28.66 per dollar at business close.

Turkish mills' new cutting (DKP) scrap buying prices
Producer 8 November (TRY/tonne) 15 November (TRY/t) Change (TRY/t)
Erdemir 10,400 10,700      +300
İsdemir 10,500 10,800      +300
Kardemir 10,650 11,000      +350
Çolakoğlu 10,255 10,555      +300
Kroman 9,800 10,100      +300
Asil Çelik  10,355 10,655      +300
Diler 9,550 9,850      +300
Mescier 9,300 9,800      +500

Source: company information