Analysis
January 16, 2026
Scrap export mart gains momentum to start 2026
Written by Stephen Miller
The export markets in the Mediterranean Basin have shown firmness over the last month and have started to build in the first half of January.
During December, buyers in Turkey concentrated on cargoes from Northern Europe and Baltic origins and held prices between $361-368 per metric ton (mt) CFR for HMS 80/20. But any attempts to drop prices or even buy sideways were not successful as the January market for scrap started to settle.
The steelmakers in Turkey continue to need material and have reluctantly turned to the US for several cargoes. European suppliers have limited availability and want higher prices. The billet market in the Far East has gone up in price where rolling them into rebar is not workable on a large scale.
So, there have been several recent buys from the US. The most recent purchase was at $376/mt CFR for HMS 80/20 with shredded and bonus at $396.
As noted in SMU’s Jan. 13 edition, the US domestic scrap market rose on HMS, P&S and shredded, which has emboldened prices for Baltic suppliers. They are now booking at $372/mt. Prospects for continued increases in price look likely, according to sources from both sides of the pond.
Just how much prices can rise is not completely clear.
Efforts by Turkey to restrain future price increases could be helped by the freight market. According to a large North American exporter and confirmed by another, the prevailing freight rates to Turkey have dropped by around $10/mt into the low $30s per mt from the US.
One source said demand has been down and the supply of ships has been building over the last month. He believes this will last through February. Referring to the freight market, he added, “It does however appear more balanced for the time being.”
He also mentioned the Chinese Lunar New Year is later this year, hence the lower freights may last longer.
This may cause US terminals to export more scrap, even with the recent jump in the domestic prices. It could be better to book these February/March export orders now rather than face a domestic price drop in March/April as winter subsides and scrap flows pick up.
On the West Coast, very little has changed since our last report. The Taiwan container market is still weak. Bulk offers to Bangladesh and India are in the $340s and not workable as opposed to selling to Turkey.
