Global scrap prices are falling in June

Since the beginning of June, the global scrap market has seen a 1–4 per cent decline in supply, depending on the region. The sharpest fall was recorded in Turkey – at 4 per cent – whilst prices in Germany remain stable.

Turkey

Between 29 May and 19 June 2026, prices for ferrous scrap in Turkey fell by 3.8% to $392.8/t FOB (HMS 1&2 80:20). Meanwhile, the average price of scrap in May stood at $409.2/t, and in June at $399/t (-2.5% month-on-month).

The Turkish market became the main source of downward price pressure on the global scrap market. Following the end of the Eid holidays, steelmakers did not resume active purchasing, although a significant portion of their raw material requirements for June and July remained unmet. Steelworks adopted a wait-and-see approach, anticipating a further decline in prices.

The decisive factor was the deterioration in the finished steel market. Demand for rebar remained weak due to high interest rates, a liquidity crunch and political uncertainty. As a result, rebar prices gradually fell to $570–600/t ex-works, forcing electric arc furnace mills to exert greater pressure on scrap suppliers.

Cheaper freight rates, the weakening of the euro and falling prices for Asian billets had an additional negative impact. Turkish buyers anticipated further falls in raw material prices and postponed purchases, exacerbating the bearish sentiment in the market.

At the same time, a sharper decline was prevented by limited scrap supplies from Europe and a relatively strong US domestic market. It is these factors that have kept prices above the $390/t CFR level for some time.

In the short term, the risks of a further decline remain high. If demand for steel does not recover and Asian billets continue to fall in price, quotations could drop to $380–385/t CFR. At the same time, limited supply in Europe will prevent a deeper correction.

EU

In the EU, raw material prices showed mixed trends over the period. In Germany, they remained at the same level when comparing 19 June with 29 May – €312.5/t ex-works (E3). Meanwhile, the average price in May was €306.5/t, and in June – €312.5/t (+2% month-on-month). In Italy, prices fell by 1.4% since the start of the month (€340/t), whilst the average price in June rose by 0.2% compared with May – €338.3/t versus €337.5/t.

The European market proved to be one of the most stable among the key regions in June. Despite the fall in prices in Turkey, which remains the main export destination for European suppliers, the domestic balance of supply and demand prevented prices from entering a sustained downward trend.

In Germany, the market entered the summer following a May rally driven by low scrap availability and strong export shipments. By June, steelmakers had already built up sufficient stocks, so the market entered a stabilisation phase. Prices were also supported by higher logistics costs and rising energy tariffs.

The Italian segment appeared somewhat weaker. Pressure from cheaper Turkish scrap and sluggish demand for long products forced some mills to lower their purchase prices. However, a shortage of high-quality automotive scrap and stable capacity utilisation at some plants prevented the market from falling significantly.

The EU market is likely to remain relatively balanced until the end of the summer. Even if demand from Turkey remains weak, limited scrap collection in Europe should keep prices close to current levels.

USA

In the USA, scrap offers on the East Coast have fallen by 1.9% since the start of June, to $355.5/t CFR (HMS 1&2 80:20).

The US market followed its own trajectory in June and was largely driven by domestic factors. Unlike in Turkey and China, the stable operation of steelworks played a key role here, as they maintained high production targets and sustained demand for raw materials.

The greatest pressure was observed in the export segment. On the West Coast, demand from Asian buyers weakened noticeably due to a seasonal slowdown in production and reduced activity in the region. This led to a gradual fall in export quotations, particularly for container shipments.

At the same time, the East Coast remained more resilient thanks to strong domestic demand and a balanced market situation. Prices for high-quality scrap were further supported by high quotations for hot-rolled coils and expensive pig iron, which boosted the competitiveness of premium-grade raw materials.

Market participants also took into account a possible reduction in the supply of industrial scrap due to summer shutdowns at automotive plants, which limited the potential for further price falls.

In the short term, the US market is likely to remain in a sideways trend. Weakness in exports will be offset by steady domestic demand, so no sharp price changes are expected for the time being.

China

In China, domestic prices have fallen by 1.3% since the start of the month to $355.78/t, whilst imported scrap has fallen by 1.8% ($402.5/t CFR).

The Chinese scrap market experienced a gradual cooling-off phase in June following a more active spring period. Unlike Turkey, where weak demand was the main issue, the Chinese market was primarily faced with an oversupply and a decline in interest in imported supplies.

Scrap inflows to steelworks gradually increased, whilst the need for additional purchases declined. Steel producers continued to operate profitably but showed no willingness to raise purchase prices. This led to a reduction in competition among buyers and a slight decline in quotations.

Problems with tax documentation and the financing of scrap collectors’ operations remained a particular challenge for the sector. Due to rising ancillary costs and a lack of liquidity, some market participants were forced to scale back their trading activity, which had a negative impact on overall business activity.

The import segment remained effectively isolated from the domestic market. Offers from foreign suppliers remained at $400–410/t CFR, making purchases economically unviable for Chinese companies and limiting the number of transactions.

In the near future, the Chinese market is likely to remain under moderate pressure. However, stable utilisation of steelmaking capacity and the absence of a sharp build-up in stocks should prevent a more significant fall in prices.

Courtesy : https://gmk.center/