Global Ferrous Scrap Prices Trend Lower in June

The global ferrous scrap market has faced downward pressure throughout June 2026, with average prices declining between 1% and 4% across most key regions. While domestic supply-demand balances have provided a floor in Europe and the United States, weaker finished steel demand and cooling international procurement have dominated the market narrative. Turkey, the world’s largest importer of steel scrap, has emerged as the primary source of downward price volatility as mills adopt a cautious wait-and-see approach.

Turkish Market Influences Global Sentiment

Turkey has experienced the sharpest price decline, with HMS 1&2 80:20 scrap falling by 3.8% to $392.8 per ton FOB since late May. Following the conclusion of the Eid holidays, Turkish steelmakers failed to resume aggressive purchasing, opting instead to monitor the market for further price softening. Weak demand for rebar, driven by high interest rates and broader liquidity constraints, has forced electric arc furnace mills to exert significant pressure on scrap suppliers. While limited supply from European origins has prevented a steeper collapse, market sentiment remains bearish as buyers anticipate potential drops toward the $380–385 per ton CFR range.

EU and US Markets Display Resilience

In contrast to Turkey, the European and U.S. markets have shown greater stability, largely buffered by domestic fundamentals. Germany remains a stabilizing force, with prices holding steady as steelmakers maintain sufficient inventories and manage rising logistics and energy costs. Meanwhile, the U.S. market has followed a divergent path; while export quotations on the East Coast softened by 1.9%, steady domestic production targets have kept prices for premium grades supported. In China, the market is currently grappling with localized oversupply and logistical challenges, leading to a gradual cooling of domestic prices by 1.3% since the start of the month.

Market Impact

○ Impacted Metals: HMS 1&2 80:20, Ferrous Scrap, Premium Steel Scrap

○ Direction: Bearish

○ Time Horizon: Near-term

○ Affected Industries: Steel Manufacturing, Automotive, Construction, Infrastructure

○ Related Price Reports: Steel Scrap Weekly Price Report

○ Watch Item: Monitor the recovery of Turkish rebar demand, as a failure to pick up in early July could force further downward adjustments in global bulk scrap pricing.

SuperMetalPrice Commentary:

The current price correction reflects a transition from spring optimism to mid-summer caution. While the US and EU markets are benefiting from domestic insulation, the Turkish market serves as a stark reminder of how sensitive scrap pricing remains to the health of the finished long-steel sector. We expect the market to remain in a sideways-to-soft trend until mid-summer shutdowns are concluded and export demand finds a new equilibrium.