Scrap Prices, News and Analysis

Global Scrap Market Overview

Global ferrous scrap markets continue to serve as a critical cost benchmark for electric arc furnace (EAF) steel production worldwide. As the largest importer of scrap, Turkey remains the primary reference point for deep-sea transactions, while price movements in the US and Europe set the broader export sentiment. Market fundamentals are driven by construction activity, mill operating rates, energy and logistics costs, and geopolitical disruptions across major supply corridors.

Following the sharp post-pandemic rally in 2021 and the extreme volatility seen during the Russia-Ukraine conflict in 2022, scrap prices entered a period of correction in 2023 due to weaker demand and margin pressure at mills. As of 2024–2025, the global scrap market demonstrates a more balanced outlook, supported by ongoing infrastructure investments and gradual progress toward greener steelmaking.

Overall, scrap pricing remains closely correlated with global long steel consumption, regional currency trends, and regulatory developments affecting international scrap flows.

Global Scrap Price Trends (2019 - 2024)

Average Annual Prices (USD/mt)

Factors Influencing Scrap Prices

Scrap prices are primarily driven by fundamentals affecting steel supply, demand, and production economics. Key determinants include:

• Steel Mill Operating Rates – Higher electric arc furnace (EAF) utilization increases scrap demand and supports pricing.
• Construction and Manufacturing Activity – Infrastructure and automotive performance directly influence long steel consumption and scrap requirements.
• Energy and Freight Costs – Elevated electricity or transportation costs raise conversion margins, particularly impacting Europe and deep-sea suppliers.
• Scrap Collection and Recycling Availability – Seasonal collection trends and regulatory restrictions can tighten or loosen supply volumes.
• Currency Movements (USD-based pricing) – Depreciation of local currencies, particularly the Turkish lira, affects import affordability and trade flows.
• Geopolitical and Trade Regulations – Sanctions, export controls, and Black Sea shipping disruptions can drive sudden price volatility.
• Substitutes and Raw Material Alternatives – Pig iron, HBI, and billet availability influence scrap usage in mill charge mixes.
• Market Sentiment & Inventory Strategies – Stock adjustments by mills and traders can accelerate bullish or bearish cycles.

Key Scrap Market Events & Price Impacts (2019 - 2024)

Regional Market Overview

Turkey Scrap Market

Turkey remains the world's largest importer of ferrous scrap, driven by its electric arc furnace (EAF)-centric steelmaking structure and strong position in the long steel export market. Scrap demand in the region correlates closely with construction activity in key export destinations in the Middle East and North Africa. Currency fluctuations, particularly the Turkish lira's performance against the US dollar, continue to influence import cost dynamics and purchasing strategies.

US Scrap Market (FOB East Coast)

The United States is a major exporter of deep-sea HMS-grade scrap, with flows primarily directed toward Turkey and South Asian buyers. US scrap pricing is shaped by domestic steel mill operating rates, regional collection efficiency, and seasonal supply trends. When export volumes increase, East Coast benchmarks typically strengthen, often setting the starting tone for international market sentiment.

European Scrap Market (FOB Continent)

Europe supplies substantial export tonnage to Turkey and, increasingly, to Asian destinations depending on freight economics and regulatory restrictions. Higher energy and labor costs have added margin pressure for European mills in recent years, impacting melt schedules and scrap demand. Policy developments related to carbon costs and scrap export controls remain structural price drivers in the region.