Analysis
May 26, 2026
Demand picks up in scrap export markets
Written by Stephen Miller
The export markets are generally showing an increased demand for scrap.
However, this demand is price sensitive depending upon the end product being manufactured in the importing country. Bulk scrap prices have been stubbornly high lately, while the prices for rebar and other long products have not risen comparably. This has resulted in margin compression or worse.
A good example of this is the situation in Turkey. The costs to import scrap from Northern Europe and North America have risen during Q1 to over $400 per metric ton (mt) CFR for HMS 80/20 and have not retreated into Q2.
Rebar numbers for exports have not consistently improved and demand is mainly from domestic users for now. This has resulted in delayed procurement of normal tonnages as Turkish buyers are hoping for weaker prices ahead.
In addition to this, political events in Turkey have caused further delays in scrap importation decisions. According to sources in Turkey, a court canceled the election of an opposition leader to the current government and this has resulted in protests.
Steelmakers there have decided to postpone scrap buying until things calm down and their holiday celebrations end. Our source told us Turkish mills still need to buy 10-12 additional cargoes for June shipment and should do so perhaps late next week. There does not seem to be an expectation of significant price reductions when they do return to the market.
The most recent prices for HMS 80/20 from Europe are in the $406-408/mt CFR range. US East Coast export prices have not broken through $410 as of yet for the same grade, despite US offers above this level.
There have been reports of declines in East Coast dockside prices for HMS 80/20. However, a buying source in the Northeast sector told SMU prices are generally sideways.
On the US West Coast, the container market has remained firm. Prices in Taiwan for HMS 80/20 have hovered at around $360/mt CFR CY while Vietnam is about $10/mt higher. Dockside FAS prices have decreased but this is due to the increased freight rates to the Far East. Since March, the container rates have basically quadrupled, according to an exporter in Southern California.
