According to the latest publication released by the Bureau of International Recycling’s (BIR) Ferrous Division, the global scrap market has continued to experience volatile conditions throughout 2026. Turkey, the world’s largest import market for scrap, followed a period of heavy purchasing in late March with significantly lower buying activity in the following months, contributing to a downward correction in prices. Demand was affected by a slower-than-expected recovery in Turkish steel consumption after the Ramadan holiday, declining rebar prices and high inventory levels at steel mills.
Weaker Turkish demand pressures European scrap exports
It was noted that weaker Turkish demand also affected European exporters. In Scandinavia, HMS 80/20 prices fell by approximately seven percent during June as a result of reduced Turkish buying interest. Exporters have increasingly shifted their attention to alternative destinations such as Morocco and Spain.
In Germany, demand from steel producers has remained broadly stable, although supplies of new scrap and turnings continue to be tight. Deliveries have also been disrupted by unreliable rail logistics, limited truck availability, lock maintenance and periods of low water levels. In the UK, competition for scrap has remained strong, particularly for shredder feed, despite lower export prices.
US market stable while Asian buyers remain cautious
In the US, demand for new steel has remained healthy despite higher prices. As scrap collections typically weaken during the summer months, price movements are expected to remain limited.
Across Asia, China’s finished steel exports declined by 8.1 percent year on year to 44.55 million mt during the January-May period, adding pressure to the domestic market. Bangladesh has continued to adopt a cautious approach to scrap imports amid weak finished steel demand, substantial excess steelmaking capacity, rising costs and squeezed mill margins. Indian steel producers have continued to favor iron ore-based feedstocks over imported scrap due to weaker steel demand and narrowing margins, while buyers in Japan have remained cautious because of elevated prices even though the domestic market continues to be firm.
South African recyclers criticize export policy
The report also highlighted developments in South Africa, where the Recycling Association of South Africa and the Metal Recyclers Association submitted a formal parliamentary statement arguing that the country’s price preference system effectively functions as an export ban on scrap.
According to the associations, the policy, originally intended to retain scrap for domestic beneficiation, has instead encouraged exports of semi-finished products while imported billets continue to enter the local market.
China’s scrap consumption declines in first quarter
According to BIR’s latest World Steel Recycling in Figures update, China’s scrap consumption declined by 12.1 percent year on year during the first quarter of 2026, despite crude steel production falling by only 4.6 percent over the same period.
Turkey remained the world’s largest scrap importer, with imports increasing 0.6 percent year on year to 4.746 million mt in the first quarter. By contrast, India’s scrap imports dropped 46 percent to 1.240 million mt.
The EU remained the largest exporter of scrap, although its exports declined 11.3 percent year on year to 4.092 million mt during the January-March period.