Analysis
March 27, 2026
Turkish steelmakers making scrap deals
Written by Stephen Miller
Turkish steelmakers entered the scrap market after returning from the Ramadan holiday, as expected.
They started earlier this week by procuring several HMS cargoes in the mid-$380s CFR from the EU. Once it became obvious scrap was not going to fall in the short term, mills continued buying at even higher prices.
Scrap terminals on the US East Coast began offering mixed cargoes of HMS 80/20 and shredded/bonus grades at $403 and $423 per metric ton (mt) CFR, respectively, according to various sources. This culminated in at least five US cargoes of 150,000-200,000 mt being sold at $396-98/mt for HMS 80/20, with shredded and bonus $20 higher.
In Europe, another 7-10 cargoes were booked at prices ranging from $390-395/mt CFR Turkey. The buyers in Turkey are booking for both April and May shipment.
US scrap availability?
What does this mean for scrap availability in the US going into the month of April?
For the last several months, US domestic scrap prices were more favorable for East Coast terminals than export prices, especially for shredded scrap. However, with this recent rise in export sales prices, the gap may have narrowed.
The prices for obsolescent grades in the US had been expected to come under pressure as winter’s grip on the weather starts to subside.
If these domestic grades fall by $20 in April, as several players still are predicting, then the $25/mt increase in export pricing may impact the potential supply available to domestic mills.
It is still unclear if this domestic drop will occur. Some mills in the US are now buying prime grades sideways going into April at sideways numbers, according to dealer sources who SMU has contacted.
If this continues, shredded may also maintain its March pricing, since sideways pricing on busheling indicates a possible shortage. There have also been reports of mills allowing suppliers to keep shipping cut grades, like HMS and P&S, and applying any over shipment to March orders rather than to a TBD.
These actions, if substantiated, indicate firmness for April.
