Earlier this week, Turkish mills maintained their cautious stance due to their slow finished steel sales, but the problem of scrap availability seemed to be a bigger factor to consider with regard to the upcoming deep sea scrap deals. Both in the US and the EU, scrap suppliers reported that scrap flow has been disrupted by bad weather conditions. While US suppliers mentioned some exporters have needed to increase their collection prices in line with the uptrend observed in their local market, European sub-collectors reported that even for them it has been hard to collect scrap since the holidays.
“We see that there is a positive vibe among the scrap sellers and there are only a few sporadic offers in the market. Even some took a step back after failing to get bids last week, and now they are aiming for higher levels,” a source at a Turkish mill said. Another source commented that import billet is not attractive or an alternative for Turkish producers for now, “especially after the recent rally observed on China’s side”.
Under the current conditions, the deep sea benchmark HMS I/II 80:20 scrap prices in CFR terms have moved up by 1.1 percent week on week. The prices are now 1.38 percent higher month on month in the deep sea segment, with prices being in the range of $364-372/mt CFR.
Despite the general expectation of a silent week, Turkish mills have accelerated their import scrap bookings towards the end of the week amid the anticipated price increases. As SteelOrbis mentioned previously, the rising collection costs, still slow scrap flow to export yards and sellers’ firm stance during the negotiations were giving signals of a rise for deep sea scrap quotations. Some Turkish mills have accepted the higher levels despite their slow rebar sales, while others cited their acceptance with sales done in other segments such as profile.
Market sources report that there is limited number of offers in the market, giving sellers a leverage during negotiations. “Sellers want to see the next week as they anticipate mills to be more active in their search of available cargoes. Almost 12-14 deals have been made for February shipment, more shall be done in the coming weeks,” an European scrap seller commented today. Several Turkish mills were seeking cargoes in the current week, not all have managed to secure a cargo. While some producers mentioned focusing on local scrap to gain time against the sellers, other sources from mills do not think this can be a long term strategy. “Deep sea scrap prices are rising, the lack of availability is not only hitting us but it is hitting the sellers. We see they are struggling to find the tonnages they need and were forced to increase their collection prices,” a source from a major mill said.
January US domestic scrap prices are expected to rise by $20-30/gt ($20-30/mt) across cut and prime scrap grades for January delivery once monthly supply negotiations are completed later this week, scrap market insiders told SteelOrbis.
Following higher December buy-cycle scrap negotiations, which saw US Midwest scrap prices rise $10-20/gt across all scrap grades, an anticipated $30/gt increase for January material would mean prices for US Midwest shredded scrap have risen nearly 14 percent since the conclusion of November scrap negotiations. Midwest busheling scrap values during the same time period will have risen by a less robust 7.7 percent, the SteelOrbis data show.
“I’ve heard that there is pretty good resistance [from suppliers] to plus previously stated $20/gt price increases for Midwest busheling,” noted one Midwest scrap broker at press time. “Larger yards want plus $30/gt.” At press time, the majority of SteelOrbis survey respondents remained at plus $20/gt for prime Midwest scrap, though that might change.
Market insiders told SteelOrbis the continued paucity of shredded material in supply yards was a direct result of cold and snowy weather in major US scrap producing regions, the result of a developing La Nina weather pattern.
At the end of the winter holidays in Europe (around December 19-January 12), the European scrap market has remained mostly cautious and is awaiting future developments.
All sources interviewed by SteelOrbis in the Italian market said they expect scrap price increases by around €10/mt on average in the coming weeks, but for the moment these are only theoretical, also because not all players have resumed full activity after the winter holidays.
As for the German market, several sources have reported increases in scrap purchase prices by local mills in the range of €5-10/mt.
For the moment, local Polish mills have not published new price lists for January purchases yet, but the expectation is for a price rise also in this case, because many producers need to buy after scrap suppliers were out of the market for almost a month during the winter holidays.
The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap procurement price in the Kansai region.
The producer’s general purchase price range for H2 grade scrap is currently at JPY 44,000-44,500/mt ($281-284/mt) depending on the mill. The Kyushu and Tokyo Bay plants still represent the upper end of the general price range.
Over the past week, Taiwan’s import scrap market has gained some strength. Having been out of the market at the end of 2025, suppliers are now testing the waters with slightly higher offer prices. The anticipated upward movement in the international scrap market as well as in some supplier regions have also provided support for the local rebar market.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have been in the range of $303-309/mt CFR this week, $3-5/mt higher than the levels recorded before the winter holidays in the US. Japanese sellers’ H1/2 (50:50) offers to the Taiwanese market are currently in a wider range, moving from $316-319/mt CFR to $315-320/mt CFR this week.
Following the silent weeks during the holiday season, Vietnam has made a stable start to 2026 in terms of prices. Market sources report that next week will give a clearer price trend in Vietnam’s import scrap market.
As the new year starts, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained stable at $350/mt CFR. Meanwhile, workable levels for Japanese H2 scrap in Vietnam are still at $325/mt CFR, stable week on week.
Imported scrap prices in Pakistan have edged higher in recent weeks, with offers from the EU and the UK showing a modest increase. Offers from the UAE, meanwhile, have risen more sharply over the same period. Despite the upward price movement, trading activity has remained moderate, as weak domestic demand continues to limit buying interest. Most offers for ex-EU/UK shredded scrap in containers have moved to $365/mt CFR, compared to $360-365/mt CFR last week, while some traders have started to report even higher offers at $370/mt CFR. According to sources, several deals for at least 5,000 mt in total of ex-EU/UK shredded scrap are reported to have been signed at $362-366/mt CFR Qasim over the past week. In the meantime, offers for ex-UAE HMS I/II 80:20 scrap have increased sharply to $360/mt CFR, versus $345/mt CFR a few days before the New Year. Besides, offers for ex-UAE shredded scrap have been voiced at $375/mt CFR, up by $5/mt week on week. According to sources, several deals for ex-UAE HMS grade and shredded scrap were signed at $345/mt CFR and $370/mt CFR, respectively, last week.
In Bangladesh, import scrap prices have remained relatively stable over the past week, with occasional deals signed for mainly containerized scrap, while trade activity in the bulk segment has remained slow. Offers for shredded scrap from the EU have remained stable at $365/mt CFR, while offers for ex-EU HMS I/II 80:20 scrap have been voiced at $345/mt CFR, up by $5/mt week on week. Besides, offers for ex-Australia shredded have settled at $365/mt CFR, up $5/mt on the lower end of the range week on week, while a deal price for ex-Australia HMS I/II 80:20 has been reported at $345/mt CFR. According to sources, several deals for 3,000 mt of ex-Chile HMS grade and 2,000 mt of ex-Australia HMS I/II 90:10 grade scrap have been signed at $347/mt CFR and $350/mt CFR, respectively, this week. In the bulk segment, offers for ex-US HMS scrap have been voiced at around $360-365/mt CFR, compared to $360/mt CFR last week, but no fresh deals have been reported so far. Most market insiders believe that trade is expected to remain slow through January, with a modest improvement possible from February. However, persistent weakness in ship recycling and ongoing political and economic challenges continue to weigh on sentiment.