Turkey’s position as a key benchmark for global ferrous markets remained evident during the first months of 2026, according to the latest report released by the Bureau of International Recycling (BIR) Ferrous Division.
Following a cautious period after the outbreak of the Middle East conflict, Turkish steel mills returned strongly to the market in late March. According to the report, mills purchased more than 30 deep-sea recycled steel cargoes within just three days. As a result, deep-sea recycled steel prices increased by more than $25/mt compared to January averages.
Monetary policy affected Turkish demand earlier in quarter
The report noted that geopolitical tensions were not the sole factor influencing market conditions.
Turkey’s central bank maintained restrictive monetary policy during the first quarter, weakening domestic steel demand and limiting mills’ ability to finance large recycled steel purchases. This contributed to cautious buying activity earlier in the quarter before the sharp increase in March.
US scrap exports to Turkey surge
Turkey’s January recycled steel import data revealed significant changes in supply patterns.
Imports from the United States rose by more than 140 percent year on year, while shipments from major European suppliers declined by double-digit percentages.
In the US market, export prices for recycled steel nearly reached domestic price levels, helping support local pricing as American mills competed with Turkish and Asian buyers for available material.
European steel prices rise despite weak demand
European steel markets recorded notable price increases during the first quarter, particularly for rebar and hot rolled coil, driven by supply shortages, import restrictions, and rising costs.
However, feedback from Germany and Scandinavia indicated that underlying demand conditions remained weak and uneven. In the UK, competition for shredder feed intensified amid rising logistics costs and higher recycled steel prices.
India and Bangladesh markets weaken
India’s recycled steel market weakened as higher import prices reduced commercial attractiveness in an environment of soft demand. Imports declined from 430,000 mt in January to 350,000 mt in February and further to around 250,000-300,000 mt in March. Domestic recycled steel consumption in India also declined from 3.4 million mt in January to 3 million mt in March due to slower construction activity.
Bangladesh similarly reported weaker recycled steel imports in the first quarter, with volumes declining by approximately 25 percent year on year as mills adopted more cautious purchasing strategies amid higher energy costs and tighter financing conditions.
Japan strengthens while China faces oversupply pressure
Japan’s recycled steel market maintained an upward trend beginning in late February, supported by recovering domestic demand, stronger exports, and a weaker yen.
Meanwhile, China’s crude steel production is expected to decline modestly in 2026, although structural oversupply continues to pressure mills to depend heavily on export markets.
Taiwan’s recycled steel imports also fell by approximately 30 percent year on year during the first quarter.
Gulf steelmakers shift toward scrap-based production
The report highlighted a growing shift among Gulf Cooperation Council steelmakers away from billet-based production toward recycled steel-based steelmaking.
Saudi Arabia has also introduced a state-coordinated recycled steel import allocation system aimed at easing feedstock shortages and stabilizing mill operations.
Scrap remains strategic material globally
In South Africa, authorities are not expected to fully liberalize recycled steel exports in the near term, as policymakers continue to view scrap as a strategic raw material for lower-carbon steel production. Despite export restrictions, weak downstream demand continues to pressure local HMS prices.
Global recycled steel usage rises in 2025
According to the latest edition of BIR’s World Steel Recycling in Figures, recycled steel usage in major global markets increased by 4.5 percent in 2025 to 480.268 million mt. During the same period, combined global crude steel production declined by 2.2 percent to 1.514 billion mt.
Turkey remained the world’s largest recycled steel importer in 2025 despite a 6.6 percent year-on-year decline in imports to 18.768 million mt, while India retained second place with imports falling five percent to 8.04 million mt.