The weekly Davis Index for Turkish DKP scrap (equivalent to bonus grade) decreased by TRY28/mt ($4/mt) to TRY2,074/mt delivered on Monday as the index for extra grade scrap (equivalent to HMS 1&2 [85:15]) declined by TRY20/mt ($3/mt) to TRY1,969/mt delivered.

 

Most Turkish mills raised local scrap purchase prices in the week of August 10 at a time when the Turkish lira devalued against the US dollar. Traders continue with concerns about the short-term direction of domestic scrap prices due to fluctuating currency exchange risks.

 

In the US, higher Turkish rebar offers in August have been considered too high by some importers against domestic options, thereby, limiting import activity to the region as well. The stronger dollar may now give Turkish mills support to place rebar in export markets. Domestic rebar demand has been weak in the past 2 weeks. 

 

Colakoglu Metalurji, Diler Demir Celik, and Erdemir all decreased their purchase prices by TRY30/mt for DKP scrap to TRY2,085/mt delivered, TRY2,030/mt delivered, and TRY2,135/mt, respectively. The three mills also dropped the purchase price of extra grade by TRY30/mt and are now buying it at TRY1,940/mt delivered, TRY1,930/mt delivered, and TRY2,130/mt delivered, respectively.

 

Isdemir took a more aggressive approach to local scrap price declines as it decreased prices from August 5 and adjusted its prices down by TRY100/mt for both DKP and extra grade scrap to TRY1,865/mt delivered and TRY1,860/mt, respectively.

 

Kardemir, which had previously raised its purchase prices by TRY35/mt to TRY2,235/mt delivered for DKP grade and to TRY2,2215/mt delivered for extra grade has maintained them at those levels this week. An announcement of lower scrap prices is expected prior to the month’s end. 

 

Shipbreaking scrap purchase price in Izmir remained unchanged at $275/mt delivered.

 

($1 = TRY7.38)

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