Market Data
March 10, 2026
US scrap export market roiled by Middle East unrest
Written by Ethan Bernard
The state of the US export market for recycled ferrous scrap is in extreme flux due to events of the last 10 days.
The outbreak of war with Iran and the collateral damage to the Gulf States have thrown the entire region into chaos. The navigation restrictions at the Strait of Hormuz have caused freight costs to rise with uncertainty as to where they will ebb, sources say.
The effects on scrap exports from both Europe and the US into the Mediterranean Basin are hard to understand at this point.
Since the beginning of hostilities, there has been several cargoes sold to Turkey from Northern Europe, the lowest priced being $363.50 per metric ton (mt) CFR for HMS 80/20. This price is down from earlier sales by a solid $5-7/mt, probably assisted by a strengthening of the US dollar vs. the euro.
There have been no cargoes sold to Turkey from the US East Coast since the war began. The last US sale to Turkey was at $374/mt CFR just prior to the start of any strikes.
Cargo costs
Although bulk scrap can move freely across the Atlantic, the costs have significantly risen. Sources have told SMU, freight rates need constant updating due to vessel shortages and increased fuel costs.
One source said, “Last week, it (the freight) would have been $50 or a little more. Today, I’m still waiting for feedback.”
A scrap trader in Italy told SMU the prices in Turkey depend on what happens with the war. He is worried many of Turkey’s customers for steel are the Gulf States, which have been drawn in to the war.
But, for now, the freights from Northern Europe and North America are the issue. Turkey is seeking short-sea cargoes, but their attempts to buy below current levels have not resulted in orders.
A quick look at the LME scrap futures market shows trades at slightly higher prices in the months ahead for imports into Turkey. This would be a complete reversal over 2025.
Sideways domestically
Another aspect limiting US and Canadian scrap exports is their domestic markets have moved sideways for March shipment. This leaves a big gap between export and domestic prices on an FOB basis, even before the freight costs are considered.
The exporters on the East Coast are continuing to sell domestically, especially for shredded. It is unclear what price US-based exporters would accept for deep-sea bulk cargoes, but some are saying north of $385/mt CFR.
Interestingly enough, SMU contacted a scrap firm in the Northeast region who told SMU the export yards in New England have lowered prices for HMS by $10 per gross ton (gt).
Recall that US scrap prices traded sideways in March. Our source acknowledged this but said, “The dealers will not fight it too much because winter is basically over and the spring flush is coming out.”
On the West Coast, according to a source, another bulk cargo of HMS 80/20 was transacted for shipment to Turkey at $374/mt CFR. The container market into Taiwan and the Far East remains firm. The bulk market into South Asia has improved but the Turkish price still is preferable at this point.
