Glencore has begun offering deep-sea ferrous scrap shipments from the European Union to Turkiye, marking a potentially significant development in the global scrap metal and green steel supply chain. The move highlights rising competition for strategic scrap resources as steelmakers accelerate decarbonization efforts and electric arc furnace (EAF) production expands across major industrial markets.
Glencore Targets Growing Deep-Sea Scrap Trade
The mining and commodity trading giant is handling the June shipment through a Baltic-region exporter. The exporter entered the Turkish market in 2023. Previously, it focused on smaller Mediterranean cargoes to destinations such as Morocco. Turkish buyers, however, require much larger deep-water shipments of around 20,000 tons.
Industry participants see Glencore’s involvement as a structural shift in the ferrous scrap market. Deep-sea scrap trading requires strong financing, vessel chartering expertise, and complex logistics management. Access to large-scale funding could increase shipment volumes from Baltic and EU ports into Turkiye, the world’s largest ferrous scrap importer.
Glencore has also expanded its logistics network. The company recently signed an agreement with Polish scrap transshipment company Lebal. The deal strengthens its ability to handle bulk scrap exports from Europe.
Turkiye Remains Central to Green Steel Production
Turkiye imports an estimated 18–20 million tons of ferrous scrap annually under normal market conditions, with material sourced mainly from the EU, the United States, the Baltics, and the UK. Imported scrap is essential for Turkish electric arc furnace steelmakers producing both flat and long steel products for export markets.
The country’s role in low-carbon steel production is becoming increasingly important as European climate regulations tighten. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is increasing pressure on steel producers to lower carbon emissions, making recycled steel feedstock strategically valuable for future steelmaking.
As global steelmakers shift toward EAF-based production and recycled metallics, ferrous scrap is increasingly viewed not only as a recycled commodity but also as a critical industrial raw material tied to decarbonization and supply security.
Commodity Traders Increase Focus on Scrap and Recycling
Glencore’s expansion into the scrap trade comes as mining and commodity companies reshape their portfolios. Recent merger talks between Glencore and Rio Tinto also highlighted the growing importance of future-facing raw materials tied to energy transition and low-carbon manufacturing.
Major commodity traders are increasing investments in recycling, secondary metals, and industrial waste streams. Demand for lower-carbon steel, battery materials, and sustainable manufacturing inputs continues to rise.
Market participants expect stronger competition for high-quality ferrous scrap cargoes. The trend could accelerate further as Europe and other major economies tighten steel decarbonization policies.
Market Impact
○ Impacted Metals: HMS 1&2 ferrous scrap, shredded scrap, E40 scrap, steel scrap feedstock
○ Direction: Bullish
○ Time Horizon: Near-term to 2027
○ Affected Industries: Steelmaking, electric arc furnace production, recycling, logistics, manufacturing, commodity trading
○ Related Price Reports: Steel Scrap Weekly Price Report, Stainless Steel Weekly Price Report, Industrial Metals Weekly Price Report
○ Watch Item: Monitor whether Glencore expands Baltic and EU scrap export volumes into Turkiye during the second half of 2026.
SuperMetalPrice Commentary:
Glencore’s entry into deep-sea ferrous scrap trading reflects how recycled metallics are becoming strategically important within the global decarbonization agenda. Large commodity traders are increasingly positioning themselves around secondary raw materials as steelmakers seek secure low-carbon feedstock supplies.
Turkiye’s dependence on imported scrap also means any increase in trading activity from major financial players could influence regional scrap pricing, freight dynamics, and competition for EU-origin material.
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