Scrap prices on regional markets fell by $10–30 per tonne in July

The fall in prices on the global scrap metal market, which began in June, continued in July. Depending on the region, the decline ranged from 2.5–8%, or $10–30 per tonne. The sharpest fall was recorded in Germany – 8%, or $29 per tonne.

Turkey

Throughout July, the Turkish market for imported scrap metal showed high volatility, with a clear reversal in the price trend midway through the month. In July, average quotations for HMS 1&2 80:20 scrap fell by 2.5%, or $10, to $370/t on a CFR basis in Turkey.

At the start of July, pessimism and falling prices prevailed due to weak demand for finished steel. Quotations for imported HMS 1&2 (80:20) scrap from Europe and the Baltic fell to $362–363/t CFR, and from the US to $365–368/t CFR (compared with $388/t in June).

An upward reversal occurred in the middle of the month. Rising freight rates, geopolitical tensions surrounding Iran and a reduction in scrap collection in Europe forced mills to agree to price increases – to $368–370/t CFR for European material and to $375–376/t CFR for American material.

By the end of the period, trading had virtually ground to a halt: the parties adopted a wait-and-see approach. Due to a lack of margin and weak sales of rebar, mills suspended purchases in an attempt to drive prices down to $365–370/t CFR.

In July, sentiment in the Turkish scrap metal market shifted from pessimism to a grudging acceptance of rising costs, and then to cautious anticipation. The main factors exerting pressure were low capacity utilisation at Turkish mills (around 60%), the devaluation of the lira, rising logistics costs in the EU (due to low water levels in rivers) and higher freight rates. Alternative imports of scrap from Asia and Russia have become less attractive due to military risks in the Black Sea region and the Middle East. At the same time, total scrap imports into Turkey for the first half of the year rose by 3.1% – to 9.7 million tonnes.

In the short term, a moderate downward price correction is possible. However, the summer decline in scrap collection in Europe and the depletion of stocks among Turkish producers create the potential for prices to recover should purchasing activity pick up in late August–early September.

European Union

Throughout July, the market showed a steady decline. In Germany, the price of E3 scrap fell by 85%, or $29, over the month to $327/t on an Ex-Works basis. The same grade in Italy fell by 3.7%, or $14, in July to $364/t (Delivered Basis).

At the start of the month, contract prices in Western Europe fell by €25/t against a backdrop of cheaper Turkish imports and Asian scrap. By the end of the month, prices had fallen by a further €20–30/t for most grades.

Market sentiment shifted from cautious to pessimistic. The main negative factors were:

1. Logistics crisis. Due to the heatwave and low water levels on the Rhine, Danube and Oder, river vessels were loaded to only 30–50% capacity, and transport on the Oder was halted. Attempts to divert cargo to rail and road transport failed – this was due to a shortage of wagons, track maintenance and rising freight costs.
2. Weak demand. The early start to summer maintenance at steelworks, a general decline in steel production in Germany (scrap consumption fell to its lowest level since 2009 – 15.7 million tonnes) and the suspension of exports to Turkey.

For August, traders and producers are forecasting a further fall in prices and a slowdown in market activity. It should be noted that in January–May, scrap exports from Germany rose by 2% year-on-year – to 3.42 million tonnes, whilst imports rose by 1% – to 1.78 million tonnes, although overall trade volumes remained below the long-term average.

Throughout July, the Italian scrap metal market came under heavy pressure and showed a marked downward trend. At the start of the month, there was a sharp fall that significantly exceeded market participants’ expectations: prices fell by €20–35/t (and by €40–50/t for certain grades) due to the deterioration in global market conditions and weak demand for finished steel. Towards the end of the month, prices for certain grades fell a further €30–40/t compared with June.

The negative sentiment is driven by an oversupply, low activity among steel distributors and overstocked warehouses. To restore balance, mills halted production in June–July and plan to extend these stoppages into August. Steelmakers’ switch from pig iron to cheaper scrap has not offset the decline in demand.

Scrap prices are expected to stabilise in September, with market activity picking up by the end of the month.

USA

Throughout July, the US scrap metal market shifted from initial stability to a moderate decline. At the start of the month, trading began in a sideways trend: attempts by steelmakers to reduce purchase prices by $10–20/t were met with resistance from sellers, who held firm at June’s levels.

A downward correction occurred midway through the period: due to seasonal factors, prices for shredded and post-scrap (HMS, P&S) fell by $10–20/t. Prices for first-grade scrap (#1 busheling) remained stable due to a shortage.

Towards the end of July, sentiment deteriorated amid a wave of cancellations of July orders. Scrap grades lost a further $10/t. Price benchmarks: #1 HMS – $340–400/t; #1 busheling – $445–470/t.

Overall, in July, average quotations for HMS 1&2 80:20 scrap in the US fell by 5%, or $17, to $328/t on East Coast terms.

The main factors exerting downward pressure were a fall in export demand (lower prices in Turkey), summer maintenance work at mills and sufficient stocks at processing plants. The market balance was supported by strong domestic demand for rolled steel and the construction of data centres.

In August–September, prices are expected to trade within a narrow range: first-grade scrap will remain stable, whilst lower-grade scrap will remain under moderate pressure (a possible decline of $10–20/t).

China

In July, average scrap prices in China fell by 5%, or $20, to $380/t on a CFR basis.

Throughout July 2026, the Chinese scrap market exhibited volatile trends, with shifting market trends and sentiment. At the start of the month, the downward trend continued, with prices falling against a backdrop of persistently negative sentiment among market participants. By the middle of the month, prices had stabilised, and a slight increase was subsequently recorded, driven by a reduction in supply. Towards the end of the period, the market turned downwards once again.

The main influencing factors were supply levels and weak demand from end consumers. The negative sentiment at the start of the month gave way to a short-term stabilisation due to a supply shortage; however, by the end of July, a cautious approach among market participants had once again prevailed.

Courtesy : https://gmk.center/en/news/scrap-prices-on-regional-markets-fell-by-10-30-per-tonne-in-july/