Turkish domestic scrap pricing continues to rise

  • Thursday, 09:31 13/09/2018 .
  • Some major Turkish steel producers continued to increase their lira-denominated buying prices for domestic auto bundle scrap (DKP grade) and dollar-denominated buying prices for ship scrap as of September 11, following consecutive hikes last week. Some mills' domestic scrap buying prices rose nearly to current imported scrap prices.

    Turkish mills have been consuming around 30 million metric tons of steel scrap per year and are procuring generally one third of it from the domestic market.

    The DKP buying price for Turkey's largest alloy steel producer, Asil Celik, reached Lira 2,070/mt ($319/mt) on Tuesday with a notable Lira 110/mt ($17/mt) increase, while one of Turkey's largest EAF-based steelmakers, Colakoglu, was buying the same grade at Lira 2,000/mt ($309/mt) Tuesday.

    At Erdemir Group's Eregli plant in northern Turkey, the DKP scrap buying price rose by a further Lira 50/mt ($8/mt) on Thursday to Lira 2,050/mt ($316/mt), effective from September 12, S&P Global Platts learned. The group's Iskenderun plant in southern Turkey was already buying the same grade of domestic scrap at Lira 2,050/mt ($316/mt) on Tuesday.

    One of Turkey's largest integrated longs mills, Kardemir, also raised its DKP-grade scrap buying price by Lira 130/mt ($20/mt) Thursday to TRY 1970/mt ($304/mt).

    Scrap from shipbreaking, meanwhile, began to be offered to most mills in western Turkey (Ege Celik, IDC, Ozkan, Habas) $5/mt higher on week at $305/mt on Tuesday. The country’s only shipbreaking yard, in Aliaga, western Turkey, supplies ship scrap to steel producers.