Earlier this week, an older deal from last week surfaced in Turkey’s import scrap market, with the price observed to be in line with SteelOrbis’ expectations. In general, market sources think that it is time for Turkish mills to accelerate their inquiries as May is a short month for Turkey due to consecutive holidays, on May 19 and a longer one on May 27-30.
“Turkey still needs to buy 20-25 deep sea cargoes to be shipped in June. Only one producer has finished its procurements for June and has started to look for July,” a European scrap seller said on May 12. “Deep sea scrap prices are firm despite the silence in the market. May is a short month and we [Turkish mills] will buy a lot of cargoes yet. I believe the price has room to move up a bit if we wait too long,” a source at a major Turkish steel producer commented. Another source at a Turkish mill stated, “Finished steel prices are the problem. They fail to recover and the competition between producers is quite high. We are failing to earn money and scrap is not showing signs of declining unless something changes in the Iran war.” SteelOrbis has heard from some local Turkish rebar traders that they are not inclined to increase their inventory levels despite the higher demand received from construction sites.
Mid-week, deep sea scrap prices in Turkey continued to move up in an ex-US scrap deal done by a steel producer in Iskenderun. Turkish mills were expected to accelerate their purchases this week, while some sources believe that waiting too long could push prices up further.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have increased by 0.61 percent week on week. The prices are now 3.46 percent higher month on month in the deep sea segment, with prices being in the range of $408-415/mt CFR.
A strong sideways trend prevailed in the May buy-cycle in the local US scrap market, as previously projected. Secondary grades trended sideways across most markets while prime grades improved by $20/gt from April settled prices, with a few exceptions. US mills came out aggressively last week, announcing measures to suppress any possible increase in obsolete grades, after sellers' opinions were heard that ferrous scrap is undervalued relative to finished steel prices. In the Midwest, the range for #1 busheling prices widened to $20/gt depending on the market. Early in the May trading cycle, prominent mills were seen buying the grade at an increase of $20/gt from April settled prices in the Cleveland and Pittsburgh markets, while in Chicago and Detroit the prices for the grade were left sideways. There were no efforts by mills to try to lower prime grades as the positive run in finished steel prices has not allowed them to.
Scrap prices to the US East Coast (USEC) docks remained unchanged as HMS I in New York and Philadelphia was unchanged at $280-290/gt delivered to export yard. Yet market stability could be coming to an end as some market fundamentals start to falter. Turkish mills have been cautious about purchases due to the uncertainty still surrounding the Iran war; additionally, Turkish steel prices have been softening.
The containerized ferrous scrap price to the US West Coast (USWC) docks increased by close to $10/mt for HMS I/II 80:20 based on deals confirmed last week at $350-355/mt FAS Long Beach port. Asian scrap demand has kept the export market from the US West Coast afloat even when ocean freight costs have stalled. The price of containerized shredded on the US West Coast rose by $10/mt to $370-375/mt FAS Long Beach port, and containerized #1 busheling increased by the same amount to $375-380/mt FAS port.
Ferrous scrap prices for the Mexican domestic market have remained largely unchanged this week once again, as scrap demand in Mexico continues to be strong. Mills also await the outcome of the US ferrous domestic trading cycle, which began this week.
Scrap prices in northern Mexico remained unchanged for HMS I at MXN6,300/mt ($365/mt) delivered consumer, P&S 5ft at MXN7,000/mt ($407/mt) delivered, machine shop turnings (MST) at MXN5,100/mt ($296/mt) delivered, shredded and #1 busheling at MXN7,900/mt ($456/mt) delivered. The dollar depreciated to MXN17.21 from MXN17.44 last week, meaning Mexican scrap sellers can now earn more if they get dollars for their grades. For example, the price of HMS I from northern Mexico last week earned $361/mt.
Canadian ferrous scrap prices for the domestic market in May reflected a $10/nt increase in prime grades, while obsoletes declined. In general, the increase in #1 busheling was attributed to a similar positive trend in the US, while the decrease in obsoletes was attributed, for the most part, to the exchange rate between the Canadian and US dollars.
Scrap flows in Canada are reported as healthy but not generous. The spring weather has helped increase scrap generation as the summer months approach. Scrap supply levels are not expected to increase in the short term, according to contacts, as there are no significant demolition projects underway nor new significant industrial accounts that could surface.
In Ontario, the price of #1 busheling increased by C$10/nt to C$530/nt delivered to consumer. The price of HMS I fell by C$5/nt to C$435/nt while P&S 5ft dropped by the same amount to $465-470/nt. Machine shop turnings (MST) also fell, by C$5/nt to $360/nt delivered, while shredded fell the same amount to $505/nt delivered.
As anticipated by SteelOrbis last week, some players in the Italian scrap market have also concluded purchases at higher prices this week, with increases of about €10-15/mt and, in some cases, up to €20/mt.
Local suppliers continue to report difficulties in sourcing material, confirming the upward pressure on prices in the market. Mills’ demand remains at a good level, as production continues at full pace, especially among long steel producers. Some mills have also reported a good level of scrap supply from abroad, especially from Germany and France.
Despite the increases observed, average price levels remain within the ranges mentioned by SteelOrbis in the previous report. E1 prices stand in a range of €295-305/mt delivered, while E3 prices are at €310-325/mt delivered or even higher for special grades.
With the Ascension and Pentecost holidays in Germany this month, respectively on May 14-17 and May 24-25, the German scrap market has accelerated its pace of activity in order to conclude scrap deals before these dates.
“It seems that, unexpectedly, things are starting to move in the German market after all. Prices appear to be increasing by around €10-15/mt, whereas at the beginning it had been assumed that prices would remain unchanged. Most scrap dealers would have been satisfied with this,” a local scrap seller commented.
As for exports, scrap prices at ports remain stable in a range of €295-300/mt DAP for HMS I/II 80:20, which is considered acceptable by the market. As long as Turkey’s imports remain stable, this value may continue to fluctuate in a narrow range.
According to sources, the Polish scrap market has remained relatively stable during May negotiations, and market participants are not observing major disruptions on the supply or demand sides. Scrap collection flows remain healthy and no shortages have been reported.
On the pricing side, a limited increase of around €5/mt has been observed in recent weeks, in line with the broader European sentiment, where scrap prices have been gradually recovering. However, this upward movement is lower compared to other European markets.
Even though German mills have accelerated scrap purchases ahead of the Ascencion and Pentecost holidays, - “a scenario that would support higher exports from Poland to Germany - […] this reaction has not materialized,” a source commented.
This overall stability is also reflected in scrap export prices, with HMS I collection prices remaining stable at €290-292/mt DAP.
Having following an upward trend since July 2025, Japan’s Kanto scrap export tender in May closed with yet another price increase. The appreciation of the Japanese yen against the US dollar has provided support for the tender price. The Japanese yen, which was at JPY 159.18 against the dollar on April 12 appreciated to JPY 157.58.
In the Kanto export tender, the highest bid was at JPY 54,602/mt ($348/mt) FAS, JPY 273/mt higher than last month. The total tonnage of the cargo is 20,000 mt, with the cargo due to be shipped to Vietnam.
The leading Japanese EAF-based steel producer Tokyo Steel increased its local scrap procurement prices on May 12, following the higher price recorded in the Kanto scrap export tender. Tokyo Steel’s general purchase price range for H2 grade scrap moved up by JPY 1,000/mt as compared to the levels recorded on April 16 to JPY 54,000/mt ($343/mt) depending on the mill. Taking into account the changes in the exchange rate, the dollar-based prices increased by $10/mt.
Taiwan’s import scrap market has remained relatively stable, though Taiwanese producers still report that they are not receiving scrap offers from Japan.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have remained relatively stable over the past week, moving from the range of $362-373/mt CFR to $362-374/mt CFR. Actual prices in ex-US deals have moved up by $1-2/mt week on week to $361-362/mt CFR. For the fourth week now, Japanese suppliers are out of the market.
Vietnamese buyers have accepted a slight increase for Japanese origin H2 grade scrap this week, while offers from the US have declined by $5/mt week on week.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $3/mt on the upper end as compared to April 30 to $400-405/mt CFR. Japanese H2 scrap offers have been at $405-410/mt CFR this week. Vietnam has bought a cargo from Australia at $400/mt CFR this week.
In the current week, the Tokyo Bay FAS-based prices for H2 grade scrap have been at JPY 53,000/mt ($334/mt).
Pakistan’s import scrap market has edged up slightly over the past week, supported by firmer overseas offers and continued uncertainty in international markets. However, trading activity has remained limited, as buyers are still cautious amid weak finished steel demand, slow construction activity, the lack of successful peace talks in the Iran war, and limited visibility for June demand. More specifically, ex-EU shredded scrap offers have been heard at $423-430/mt CFR Qasim this week, up slightly from recent workable levels of $420-425/mt CFR reported last week, while ex-UK shredded scrap has been offered at $425-426/mt CFR, remaining substantially close to the $425-428/mt CFR levels at which deals were concluded last week. Overall, workable prices for ex-EU/UK shredded scrap are currently assessed at around $423-426/mt CFR. In the Pakistani domestic market, activity has remained slow, with construction demand still weak and some mills operating below 40 percent of capacity. Local scrap equivalent to shredded has been heard at PKR 152,000-156,000/mt ($546-560/mt) ex-warehouse, down from around PKR 160,000/mt ($574/mt) ex-warehouse heard last week, while local 10-12 mm grade 60 rebar prices have remained unchanged at around PKR 245,000/mt ($879/mt) ex-works.
Bangladesh’s import scrap market has remained muted this week, with sentiment turning more negative as mills have mostly withdrawn from fresh negotiations after securing sufficient volumes in April. Ex-EU/UK HMS I/II 80:20 scrap in containers have been offered at $385-395/mt CFR Bangladesh this week, compared to $390-395/mt CFR heard last week, while ex-EU/UK shredded scrap in containers have been offered at $415-420/mt CFR, unchanged from last week’s levels. No fresh concluded deals for ex-EU/UK containerized scrap have been heard so far, while buyers are focusing mainly on nearby origins and short-transit cargoes. Meanwhile, the local Bangladeshi market has remained under pressure from weak finished steel demand, cautious mill sentiment and tight liquidity conditions, with local rebar prices heard at BDT 77,000-92,000/mt ($627-749/mt) ex-works, varying depending on brand value.
