Most Turkish steelmakers have increased their domestic scrap buying prices since last week, Kallanish notes.

Turkish imported scrap prices have risen sharply since last week as a result of some Turkish mills' return to scrap purchases coupled with tight supply due to the coronavirus outbreak. Some Turkish mills, especially ones in need of scrap volumes, have thus been forced to increase their domestic scrap buying prices. Other mills, however, have kept their prices unchanged.

Scrap supply in the domestic market has also decreased due to anti-virus measures and positive virus cases at some scrap collectors. Although Turkish scrap consumption has also decreased due to production halts and cutbacks, mills that continue production are in need of material after delaying purchases for some time. Those mills are willing to pay higher in order to secure a share of the limited supply.

A Turkish scrap yard tells Kallanish: “Inflow has seriously decreased. Even some mills that have halted domestic scrap purchases in previous weeks have increased their prices and started buying scrap from domestic suppliers. The rate of increase, however, is still well below the rate we have seen in imported scrap prices.”

Turkish shipbreaking scrap prices have also increased from $215/tonne a week ago to $230/t delivered by truck. Auto bundle scrap prices in the Aegean region, however, remain unchanged at TRY 1,400/t ($207/t).

Source: Company information