Domestic Scrap Prices are Rising, Imports are Declining.

Ongoing Increase in Scrap Iron Prices

Scrap iron prices have continued their upward trend, especially in recent times. The decrease in imports has caused scrap prices in the domestic market to rise. In Turkey, local scrap prices have recorded an increase of approximately 8% in the last two months.

Price Increases in the Iron and Steel Sector

Important iron and steel producers in Turkey, Kardemir and Erdemir, have decided to increase the scrap purchase prices they pay in the domestic market starting from November 15. Kardemir has set the price for DKP quality scrap at 15,400 lira, while Erdemir will purchase at 15,055 lira per ton.

Kardemir and Erdemir Announce Their Prices

Kardemir has implemented four separate price increases in the last two months. After the increases made in September and October, they updated their prices twice in November. For example, the DKP quality scrap price, which was 14,300 lira on September 24, will be purchased at 15,400 lira as of November 15. Kardemir will also acquire extra scrap at 15,165 lira, which was previously 14,065 lira, and the price for Group 1 scrap, previously 13,920 lira, will be 15,020 lira.

Erdemir's Increases

Erdemir has raised the scrap purchase price by 300 lira per ton effective from November 15. In this context, the price for DKP quality scrap has increased from 14,755 lira to 15,055 lira, while the extra scrap will be acquired at 15,050 lira, and Group 1 scrap will be sourced at 13,845 lira.

Decrease in Imports and Increasing Demand

It is known that the Turkish steel sector's annual scrap requirement of approximately 30 million tons is met by 20 million tons from imports and 10 million tons from the domestic market. The recent decrease in imports has led to an increase in demand in the domestic market. The revival of construction and infrastructure investments has positively impacted steel production, while the increasing demand for scrap has caused prices to move upward.