Analysis
June 23, 2026
Ferrous scrap export market stays sluggish
Written by Stephen Miller
The export market off the US East Coast has been largely inactive over the last two weeks.
There has been only one cargo sold to Turkey at a price of $388 per metric ton (mt) CFR for HMS 80/20. This price is down $18/mt from the last confirmed sales of US-origin material.
Several trading sources were surprised by this since the seller did not receive the normal freight differential over shipments from Northern Europe. There have been no further US sales to Turkey since then.
A recent sale of HMS 80/20 from the Netherlands to Turkey fell to $380/mt CFR. This was a drop of about $6/mt from the last series of transactions. There is debate if this price should be considered a floor.
Euro woes
This week the euro has weakened against the US dollar. f this persists, it could have major effects to the flows and prices of scrap into Turkey.
First of all, the weakening euro makes Turkey’s steel exports into the EU countries less competitive, and could result in lower margins or less sales volumes.
Regarding scrap from Northern Europe, this situation could benefit sellers who get paid in US currency but buy their domestic material in the weakened euro.
So, they may be able to afford to sell to Turkey at reduced prices and still maintain or increase their margins. Of course, this assumes Turkey will continue buying in normal volumes.
US/Canada
For business from the US and Canada, the Turkish mills may have to wait longer for any scrap purchases. They have to pay in dollars and this will increase their import costs from North America.
Also, the current firmness of the US domestic scrap market will keep most of the coastal export scrap at home, especially with any reductions in Turkish offers.
Italy
The situation in Italy is basically the same as mills are seeking to drop prices 10-20 euros, according to a local trading source.
He said he was surprised by the recent declines in export prices to Turkey from Europe and is skeptical Italian mills will be able to realize significant declines for deep-sea scrap cargoes from North America.
Freight
Another aspect affecting the costs of scrap exports is deep-sea freight.
The conflict in the Persian Gulf aggravated an already pressured freight market and pushed Atlantic shipping costs higher. Will freight moderate with the anticipated opening of the Straits of Hormuz?
SMU spoke with a traffic executive with a major North American scrap exporter about the current situation. He said although fuel costs have decreased as oil prices have dropped, the overall freight rates have not changed very much.
The prevailing rate for a Handymax-sized vessel from USEC to Turkey is still in the $44-45/mt range.
He went on to explain there are three factors that make up a deep-sea freight expense. They are:
- Ship’s Value or Daily Rate
- Port Costs
- Fuel prices
In today’s market, there has been an increase in the daily rate of a vessel. This is a function of supply and demand. This rise in the daily rate has kept rates at static levels, even though fuel prices have gone down. Port costs only change once per year, so this is not a factor.
In short, the increase in a ship’s value washes out any fuel savings. He added this could eventually change if freedom of navigation improves and hostilities terminate.
West Coast
On the US West Coast, the price offers for US containerized scrap to Taiwan and Vietnam have become largely unworkable due to ever increasing freight rates. The strengthening US dollar against Asian currencies will make scrap imports more expensive from the US. There seems to be little room for an increase in costs at this time.
