An older scrap deal from earlier this week has surfaced in the market, indicating that ex-UK/EU scrap prices for Turkey have softened a little. Sentiment in Turkey’s import scrap market has changed over the current week from a firm sideways movement to a softer trend, with Turkish mills starting to exert pressure on deep sea scrap offers. Meanwhile, Turkish mills will have to make decisions regarding capacity utilization rates and maintenance works in the light of reports of a likely earlier-than-expected hike in energy prices.
Market sources report that sellers are not aggressive in their scrap offers to Turkey, though there are plenty of available cargoes that can be offered for shipment in the second half of June. “I am not sure whether Turkish mills would show interest in them immediately as they are expecting a hike in energy prices in June,” a source commented. The Turkish government had been expected to increase energy prices in July due to the ongoing energy crisis against the backdrop of the Iran war. However, during the past week expectations have emerged for a hike in energy prices in June, SteelOrbis hears. “Higher energy prices mean Turkish mills’ margins will shrink further. A strategy to produce now at lower cost and then to announce maintenance works in the coming period makes sense to me,” a source commented. A source at a Turkish mill said, “I agree that higher energy prices will add more challenges for mills, though lower scrap prices also mean end-users will exert pressure on finished steel prices. This is the dilemma. I am not sure whether Turkish mills would love a decrease in deep sea scrap prices in the short term.”
The new political turmoil started mid-Thursday in Turkey is also expected to have economic results. Therefore, at the end of the week, trade was slow for steel and scrap, while market players were trying to understand the first impacts. Turkey will mostly be out of the market next week due to Feast of Sacrifice holiday. “Depending on Turkish mills evaluation and new expectations, market can go either way and we will have to wait and see,” a seller commented today. SteelOrbis has heard that some US originated sources believe that prices are softening, cutting their collection prices in docks by $10/mt. Meanwhile, some Turkish mills already starting to bid prices lower than $400/mt CFR, exerting significant pressure on deep sea offers.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have decreased by 0.24 percent week on week. The prices are now 2.11 percent higher month on month in the deep sea segment, with prices being in the range of $406-415/mt CFR.
Participants in the US domestic ferrous scrap market believe that all grades could trend sideways in June. Some of the positive sentiment towards prime grades, which were mentioned could again increase by $20/gt like they did for some markets in June, has dissipated this week as stakeholders differentiate between their aspirations and reality. #1 busheling continues to be undervalued according to several sellers, yet based on recent months, they expect mills to continue to try and exert downward pressure on scrap as much as possible, especially when they just raised prime grades in May in some markets.
Ferrous bulk scrap buyers at the docks in California dropped their prices by $15/gt this week due to higher ocean freight costs for bulk. In Southern California, HMS I dropped to $260-270/gt delivered Los Angeles (LA) export yard as P&S 5ft dropped by the same amount to $275/gt delivered. Shredder feed remained unchanged at $215-225/gt delivered. The buyers also reported that soft Asian demand for HMS I/II 80:20 is affecting prices at USWC docks.
Ferrous scrap prices to the US East Coast (USEC) remained unchanged in New York and Philadelphia for another week, as scrap generation remains solid and uncertainty persists around exports to Turkey. Sales activity in Turkey has been quiet due to the May 19 Commemoration of Atatürk, Youth, and Sports Day National Holiday. There is also the Eid al-Adha public holiday on May 27-30, additionally, geopolitical uncertainty derived from the US-Israel-Iran war continues. Despite this, export activity to Turkey could pick up as the country reportedly needs 20 cargoes for June shipment.
Ferrous scrap prices for the Mexican domestic market diverged this week in trend, as some mills caught up by lowering their prices while a very limited number of steelmakers began increasing their prices by MXN100/mt across the board. Participants attribute this divergence to price corrections needed to stabilize scrap demand. Mills tried to instill a sustainable downward trend, but the market did not allow it. In general, the slight upticks offset the last price contractions.
Participants noted that the decreases observed last week, particularly in Veracruz, were due to lower finished-steel volumes. The Mexican steel sector has been resilient, yet not completely immune to the US import tariffs imposed on Mexican steel. Grupo SIMEC’s net profit in 2025 decreased by 51pc annually, according to its latest report. The company’s shipments declined by 6pc during the same period.
The upward pressure that has recently characterized the Italian scrap market seems to have eased slightly this week, with prices holding stable at high levels and with demand from steel producers slowing. The first rumors regarding the market trend in June point to possible price stability, probably in view of the traditional summer shutdowns by mills.
During May, scrap demand from mills has remained at a good level, but the German scrap market has been characterized by a fragmentation that has become usual in the past few months. Moreover, a lack of higher scrap grades continues to weigh on local scrap availability. If export demand remains firm and logistic costs remain high, the local German scrap trend for the next few weeks is expected to remain stable on an elevated level, especially if scrap availability remains tight for certain grades.
According IPHGZ, the average scrap purchase price for delivery to yards in the Polish scrap market in May has reached PLN 1,156/mt (around €272/mt) for W2 scrap (equivalent to HMS I) and PLN 1,230/mt (around €290/mt) for W7 scrap (equivalent to bonus), up by PLN 60/mt (€14/mt) and PLN 74/mt (€17/mt), respectively, compared to April.
The leading Japanese EAF-based steel producer Tokyo Steel has dropped its local scrap procurement prices today, May 22, only in the Kansai region. This is the first downward correction announced by Tokyo Steel since the beginning of the year.
The general price range for H2 grade scrap has moved down by JPY 500/mt on the lower end as compared to the levels recorded on May 13 to JPY 53,500-54,000/mt ($336-339/mt), depending on the mill.
Taiwan’s import scrap market has remained relatively stable, and Japanese scrap suppliers have finally returned to the market with new offers. Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan are in the range of $363-365/mt CFR. Actual prices in ex-US deals have moved up by $1/mt on the lower end week on week to $362/mt CFR. Japanese suppliers have returned to the market this week after four weeks of absence. Bulk H1/2 (50:50) scrap offers from Japan to Taiwan are at $397/mt CFR. S
Vietnam’s import scrap prices have remained stable over the past week, even though some lower-than-expected levels were recorded, these were considered one-time opportunities for now.
SteelOrbis has learned that Vietnam has bought several ex-USWC cargoes, and the bulk HMS I/II 80:20 scrap price was in the range of $394-398/mt CFR, very close to the levels that were expected to be workable last week at $395-400/mt CFR.
According to sources, Vietnam’s ex-Japan H2 grade scrap procurement prices remained at $390/mt CFR.
In the current week, the Tokyo Bay FAS-based prices for H2 grade scrap have remained at JPY 53,000/mt ($333/mt), down by $1/mt considering the fluctuating Japanese yen-US dollar exchange rate. The FOB-based export price remains at JPY 54,000/mt ($339/mt) for the grade in question, down by $1/mt week on week.
Pakistan's imported scrap market has remained subdued over the past week, with buying activity slowing ahead of the Eid-ul-Adha holiday, officially scheduled in the country on May 26-28, 2026. Offers for import shredded scrap have softened slightly from last week's range, but buyers have continued to target lower levels, while overall sentiment remains weak. More specifically, ex-UK/EU shredded scrap offers have been heard at around $420-425/mt CFR this week, compared to $423-430/mt CFR heard last week. According to sources, no significant fresh buying has been reported this week, while some mills had bought at around $420/mt CFR last week and are still trying to secure material at similar levels. Meanwhile, offers for ex-Malaysia shredded scrap have been voiced at around $440/mt CFR, while Pakistani buyers are reported to be showing more interest in shorter-transit routes due to the current instability. Market sources indicate that overall buying interest is likely to remain limited in the near term, as most procurement has already been completed ahead of the holiday period.
In Bangladesh, import scrap market activity has remained slow over the past week, with offers mostly stable but buying interest subdued amid weak rebar sales, the approaching Eid holiday and higher freight costs. More specifically, ex-EU shredded scrap in containers have been offered at around $415/mt CFR Bangladesh this week, while ex-EU HMS I/II 80:20 scrap in containers have been offered at around $395/mt CFR, with both prices remaining broadly in line with the respective levels of $415-420/mt CFR and $385-395/mt CFR heard last week. No fresh concluded deals for ex-EU/UK containerized scrap have been heard so far, while the availability of offers has also remained limited. As for ex-Australia material, shredded scrap has been offered at around $420-425/mt CFR Bangladesh this week, up from the latest level heard for the same origin at $412/mt CFR late last week. Meanwhile, some Bangladeshi mills are reported to have ordered Singapore-origin HMS I/II 80:20 scrap at $425/mt CFR Bangladesh. According to market sources, fresh import scrap bookings are likely to remain limited to urgent requirements in the short term.