Turkish currency crisis to affect international scrap prices
The Turkish currency storm was spreading worldwide. In addition to affecting the prices of stock market and bond market, the international scrap prices would now being affected.
Turkey was important buyer of the US container scrap, and it was able to control prices due to its great consumption. However, the recent Turkish lira crashed caused Turkey to spend more money to import the original scrap than before, and in order to create profits, Turkey might increase the export price of processed scrap products, which might be unfavorable to Turkish exports.
The market participants believed that Turkey might purchase more products to lower scraps prices. Moreover, the US container scrap sellers might adjust the price because they did not want to lose big customers. By then, the international scrap iron price would be loosened.
