Turkey imports more scrap than any other country, and its buying practice — bulk cargoes, CFR pricing, mill inspection at discharge and the published index — sets the pattern for the ferrous trade worldwide.
Turkey imports more scrap than any other country, and its buying practice — bulk cargoes, CFR pricing, mill inspection at discharge and the published index — sets the pattern for the ferrous trade worldwide.
Turkey’s electric-arc furnace mills on the Marmara, the Aegean coast at Aliağa and the Mediterranean at İskenderun buy scrap cargo by cargo, usually 20,000 to 50,000 tonnes, on a cost-and-freight basis to the mill’s port. A cargo is typically a blend: HMS 1&2 80:20 as the base, with shredded and bonus grades (P&S, busheling, bundles) priced at agreed premiums. The buyer and seller agree the price per tonne, the grade mix, the shipment window and the inspection terms, and the mill’s purchases are reported by the price-reporting agencies within hours.
The United States East Coast and Gulf, the Netherlands, Belgium, Germany, the United Kingdom, the Baltic states and Russia are the main suppliers; US and European cargoes are the reference for the index.
The “Turkish import HMS 1&2 80:20 CFR” assessment published by the price-reporting agencies is the world benchmark for ferrous scrap. It is derived from reported deals into Turkey, and scrap prices in every other importing country are quoted as a discount or premium to it. Turkish rebar export prices move with it, which is why the Turkish mills’ order books in the Middle East, Africa and the EU drive their scrap demand.
Turkish mills inspect at discharge: the cargo is weighed and graded on arrival, and claims for off-grade or short-weight material are deducted. Turkey requires radiation screening and prohibits certain materials; because Turkey is an OECD member, European exporters move scrap there under the lighter OECD procedure. Turkey’s own regulations on scrap import licensing and environmental permits for mills are set by the Ministry of Trade and the environment ministry.