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| EU Scrap Collection |
European Scrap Market Faces Supply Tightening and Price Pressure
The EU Scrap Collection 2026 is projected to rise by 8 million tons. As a result, European steel producers will need to boost output by 13–14% to maintain stable supply. Meanwhile, CBAM and new tariff quotas may cut imports by up to 50% year-on-year. Therefore, domestic scrap consumption will increase sharply, driving market adjustments across Europe and globally.
Price Implications for EU and Global Scrap Markets
Historical trends show that large demand jumps can push scrap prices up by 33% in Europe. Consequently, E3 Demolition Germany prices may reach €400/t, while global HMS 1&2 prices could hit $500/t CFR Turkey. However, falling iron ore costs and strong Asian steel exports may moderate these peaks. As a result, the expected EU scrap exports may decline to 13–14 million tons in 2026.
Regulatory Factors and Strategic Market Outlook
Regulatory measures under the European Action Plan for Steel and Metals could limit scrap exports. Therefore, price growth in the EU may be partially contained. Nevertheless, global markets should prepare for higher scrap costs in 2026. As a result, buyers and steelmakers must adjust procurement and pricing strategies accordingly.
ScrapInsight Commentary
The EU’s anticipated scrap demand surge will tighten domestic supply and elevate global prices. Regulatory limits on exports could stabilize EU prices, while international buyers face cost pressures. Strategic planning is essential for steelmakers and scrap traders in 2026.
