Turkey has started to buy scrap for September shipment, though Turkish mills are resisting higher price levels due to their concerns regarding steel demand, the ongoing turmoil in the Middle East, and the lack of workable profits. Meanwhile, scrap suppliers are concerned about the very slow scrap flow to export yards, particularly in the EU, and about their cost structure.
Market sources report that there were some scrap cargoes available for August shipment, which have now been postponed to September, and so some softer price levels may be achieved for these materials. Other market players do not agree with this view, reporting that the lower bids received from the Turkish mills are not favored by scrap sellers. Some sources believe that rebar demand may revive a little during September. Sources report that import billet prices offer little support to Turkish mills for the time being, with one source noting, “Using scrap makes more sense considering the current billet prices to Turkey.” For now, except for prompt shipments, it is believed that deep sea scrap prices will remain firm and may have some room to move up depending on rebar demand in Turkey.
Looking at the market picture from a wider perspective, Turkey's deep sea scrap prices - despite some volatility - were generally moving in an upward direction beginning from September last year. The uptrend started at $330.75/mt CFR on September 2025 and reached its peak at $411.5/mt CFR in May 2026. Since May, deep sea scrap prices for Turkey have been moving down and lost 9.6 percent of their value. Since the start of 2026, a clear threshold on the lower end has been observed at around $370/mt CFR for Turkey's import scrap prices, with deep sea scrap prices only moving below this level during 20 days since January 16 this year.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have remained stable week on week. The prices are now 0.13 percent higher month on month in the deep sea segment, with prices being in the range of $368-376/mt CFR.
Negotiations for the August US domestic ferrous trading cycle began on Wednesday, as mills across the country issued price announcements. In the Midwest and South/Southeast, there has been a generalized trend showing prices for prime grades and P&S 5ft moving sideways, while shredded and machine shop turnings (MST) and HMS I prices are being pushed down by $20/gt. Negotiations are ongoing, and prices are not settled yet. This is aligned with expectations in the past weeks, with the possible exception of mills trying to contract HMS I prices by a deeper margin.
Prices for the export market on the US West Coast remained solid this week. Bulk prices to the docks were flat for the sixth consecutive week, and there have been no reports of the price decreases that were announced three weeks ago by exporters having been implemented. Initially, the scrap-to-docks price reduction was delayed as exporters waited for more clarity on higher energy and fuel costs amid escalating volatility in the US-Iran war. The price of HMS I remains at $240-250/gt delivered to Los Angeles export yard, P&S 5ft at $270/gt delivered, and shredder feed at $190-200/gt delivered. In the San Francisco Bay Area, prices remained at $250/gt delivered to export yard, P&S 5ft at $260/gt delivered, and shredder feed at $200/gt delivered.
Scrap prices for the US East Coast export market increased on Tuesday. Both bulk scrap prices to the docks and prepared scrap for export prices increased amid a recent upswing in the Turkish import market. Yet, US East Coast contacts are concerned that the fundamentals for the Turkish steel market have not improved much and that the current bullish run will reach a market ceiling very soon. The price of HMS I to the New York docks rose by $5-10/gt this week to $260-265/gt delivered to export yard, P&S 5ft increased by $10-15/gt to $280-285/gt delivered, while shredder feed prices for the New York export market were helped by higher prices in Philadelphia and reached $225/gt delivered to New York export yard.
Mexican ferrous scrap prices in the domestic market decreased in the Northern region, as several steelmakers have reportedly stopped receiving material at some of their mills for a week. In the Central and Bajio regions, prices remained sideways as depressed rebar demand continues to weigh on the scrap market. Moreover, another possible round of decreases in the US for the August domestic trading cycle (particularly for shredded and HMS I) has provided some mills with the confidence to continue lowering their prices.
In Bajio, scrap prices were also unchanged on all grades. The price of #1 busheling was flat at MXN 6,700/mt ($387/mt) delivered consumer, while HMS I prices remained at MXN 6,000/mt ($346/mt) delivered, and P&S 5ft stayed at MXN 6,200/mt ($358/mt). Shredded prices sit at MXN 7,300/mt ($421/mt) delivered, and MST at MXN 5,200/mt ($300/mt) delivered.
As anticipated by market sources, Japan's Kanto scrap export tender resulted in a drop of $11/mt on August 7. The tonnage of the cargo sold is 20,000 mt, with the destination reported to be Bangladesh. In the Kanto export tender, the highest bid was at JPY 49,086/mt ($312/mt) FAS, only JPY 3,422/mt lower than last month. The dollar-based price moved down by $11/mt from last month's $23/mt FAS, taking into account the changes in the exchange rate.
The leading Japanese EAF-based steel producer Tokyo Steel has cut its local scrap procurement prices for the third time this week. Following the previous JPY 1,500/mt cuts announced on August 4 and August 5, another JPY 500-1,000/mt reduction has been made by the producer. With the latest drop, only the price in the Tahara region is now above the JPY 50,000/mt level, which is a psychological threshold for the local Japanese scrap market.
Tokyo Steel's general price range for H2 grade scrap has moved down by JPY 500-1,000/mt as compared to the levels recorded on August 5 to JPY 48,000-51,000/mt ($305-324/mt) depending on the mill.
Taiwan's import scrap market has stabilized over the past week as Japanese scrap suppliers have gone absent again. The fluctuation of the Japanese yen-US dollar exchange rate has caused Japanese suppliers to maintain a cautious stance on scrap exports this week. Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have been relatively stable, only changing from the $329-332/mt CFR recorded last week to $330-332/mt CFR. Japanese offers to Taiwan have disappeared this week. Offers for Japanese bulk H1/2 (50:50) scrap shared with Taiwan were at $350-358/mt CFR last week.
Vietnam's interest in Japanese scrap has continued this week as prices have dropped further, while they have remained uninterested in the scrap offers received from the US. Japanese scrap suppliers may take a step back from exports in the coming days amid the appreciation of the Japanese yen. Scrap demand in Vietnam is on the low side amid slow steel demand in the country.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap have remained at $370-380/mt CFR this week, unchanged week on week. There have been deals done for ex-Japan H2 scrap in Vietnam at $355/mt CFR, with the workable level declining by $5/mt on average since last week.
Pakistan's import scrap market has lost momentum over the past week, with fresh ex-UK shredded scrap bookings concluded below last week's levels and with the SteelOrbis reference price decreasing by $5/mt. More specifically, ex-UK shredded scrap has been sold at $410-415/mt CFR Qasim this week, including a confirmed deal concluded at $414/mt CFR, down from the SteelOrbis reference price of $415-420/mt CFR Qasim reported last week. Sentiment has become more cautious as some market participants anticipate further corrections if geopolitical tensions ease.
As for other origins, Middle East origin HMS I/II 80:20 and sheared HMS have been heard offered at indicative levels of around $410-420/mt CFR Qasim, with sheared material positioned at the upper end of the range. Malaysian PNS and shredded scrap have also remained available, although high freight costs have limited buying interest. Some Pakistani mills have continued to cover their September and October requirements, though procurement has become more selective as buyers wait for a clearer direction in import scrap prices. In contrast, several Pakistani rebar producers have announced price increases despite the softer import scrap trend. Hunza Steel and Sheikhoo Steel grade 60 rebar prices have both been increased by PKR 7,000/mt ($25/mt) with immediate effect.
Bangladesh's import scrap market has ground to a near standstill over the past week, as difficulties opening letters of credit have effectively halted fresh purchasing activity. Steelmakers have consequently turned mainly to domestic scrap, while local scrap and rebar prices have declined in response to weak finished steel demand. More specifically, ex-EU shredded scrap in containers has been indicated at $395/mt CFR Chattogram this week, down from $400/mt CFR Chattogram last week, while ex-EU HMS I/II 80:20 scrap in containers has been indicated at $363/mt CFR Chattogram, down from $370/mt CFR Chattogram in the previous week. No fresh bookings for European material have been heard, as letter of credit (LC) constraints have kept most mills out of negotiations.
As for ex-Australia material, 5,000 mt of shredded scrap have been offered at $410/mt CFR Chattogram for mid-August and September loading, up by $10/mt from the $400/mt CFR Chattogram offer level reported last week. In terms of other origins, 3,000 mt of ex-Singapore PNS scrap have been offered at $420/mt CFR Chattogram, up by $10/mt from the $410/mt CFR Chattogram offer reported last week. As for ex-Japan material, unconfirmed market indications have placed H2 scrap in bulk at $380-385/mt CFR Chattogram this week, compared to offers at $395-400/mt CFR Chattogram reported last week.
Meanwhile, Bangladesh's domestic steel market has remained under pressure, with local scrap prices moving lower, while rebar prices in Chattogram have remained broadly stable.
