Global scrap metal markets showed mixed regional trends in September. Major scrap-consuming economies managed shifting inventory cycles, energy costs, and supply bottlenecks. Turkey became the main pricing driver with strong import gains after the summer slump. Meanwhile, European and Chinese markets faced local stagnation and cautious buyer behavior.
Turkish Import Surges and EAF Raw Material Pressures
Imported scrap prices in Turkey surged sharply during September. Grade HMS 1&2 80:20 climbed from $380–$382 per tonne CFR early in the month to $402–$404 per tonne CFR. Average monthly quotations rose $28 to reach $400 per tonne CFR. However, gains leveled off near month-end as buyers resisted higher prices. Buyers successfully closed European contracts at $395 per tonne CFR.
Disruptions to Russian and Ukrainian billet and pig iron supply made scrap vital for Turkish electric arc furnaces. At the same time, higher freight rates and diesel costs raised operating expenses for local mills.
European and Asian Market Divergence
European markets showed contrasting trends. In Germany, E3 scrap prices rose $11 to $332 per tonne Ex Works due to tight collection volumes. Conversely, Italian E3 prices fell $13 to $358 per tonne. Weak finished steel demand, high energy tariffs, and rail disruptions pressured Italian mills.
In Asia, Chinese domestic scrap prices fell by an average of $9 to $360 per tonne CFR. Strict payment restrictions and tight liquidity weighed on market sentiment. Meanwhile, expected pre-holiday factory restocking failed to materialize before National Day.
Market Impact
○ Impacted Metals: HMS 1&2 80:20 Scrap, E3 Scrap Germany, Shredded Scrap, Iron and Steel Scrap
○ Direction: Mixed
○ Time Horizon: October 2026 / Q4 2026
○ Affected Industries: Steelmaking, Electric Arc Furnace (EAF) Mills, Metal Recycling, Construction, Infrastructure
○ Related Price Reports: Steel Weekly Price Report, Stainless Steel Weekly Price Report
○ Watch Item: Tracking escalating European energy tariffs and inland logistics constraints affecting scrap collection and delivery schedules.
SuperMetalPrice Commentary:
September highlighted the delicate balance between surging EAF input costs and sluggish finished steel demand. While Turkish mills absorbed higher import tabs due to pig iron supply tightness, margin compression across European and Asian steelmakers points to a cautious, highly volatile pricing environment heading into Q4.
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