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| Global ferrous scrap prices |
Global scrap prices experienced a moderate upward trajectory in May 2026, with most major markets recording gains between 1% and 3%. While the ferrous scrap sector demonstrated resilience across Turkey, the EU, and the United States, China emerged as the sole outlier with declining import values. This divergence highlights a shifting landscape in raw material procurement, driven by varying regional demand for steel products and logistical constraints. Therefore, understanding these regional nuances remains essential for industry participants managing supply chain volatility.
Regional Drivers and Market Performance
The European and Turkish markets exhibited distinct behaviors throughout the month. In the EU, robust capacity utilization at steel mills combined with limited collection rates pushed prices for E3 scrap in Germany up by 3.3%. Similarly, Italy saw a 3% increase due to logistical challenges and pre-emptive purchasing ahead of regional transit restrictions. Conversely, the Turkish market started the month with strong upward momentum reaching $408.5/t, but faced significant resistance toward the end of May. As a result, weak demand for finished rolled products and cheaper Chinese billets shifted the advantage toward buyers, setting the stage for a potential price correction.
US Stability and China’s Divergent Path
The U.S. market maintained relative stability in May, with prices rising by a moderate 2.1% to $362.5/t. High demand from electric arc furnaces provided a firm price floor, even as traders focused increasingly on domestic sales over sluggish exports. In contrast, China’s market presented a mixed picture; while domestic prices rose by 1.8%, import prices plummeted by 6.5%. Meanwhile, processing tax issues and sufficient local supply further dampened interest in foreign scrap. Therefore, global market participants must anticipate a period of stabilization as summer collection rates increase and seasonal demand fluctuations influence trade volumes.
ScrapInsight Commentary
In May, the global scrap metal market was driven by supply and demand imbalances and logistics issues by major regions. In the future, the market is expected to face a flat or slight correction due to increased supply and moderate steel demand due to increased scrap metal collection in the summer. In particular, the fall in import prices in China is sending a strategic signal to global traders that they should closely monitor the recovery of demand in the Asian market.
