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| Turkish Scrap |
The global scrap market is experiencing a noticeable downturn as June trading activity slows across key regions. Average prices have declined between 1% and 4% since the beginning of the month. Turkey currently serves as the primary source of downward pressure due to weak finished steel demand. Meanwhile, other regions like the EU and the USA show varied resilience against this bearish trend. Consequently, market participants are adopting a cautious wait-and-see approach.
Regional Market Dynamics and Price Trends
Turkey’s market remains the focal point for the current global scrap market correction. Steelmakers in the region have postponed active purchasing following the Eid holidays. Furthermore, high interest rates and liquidity challenges have weakened demand for rebar. As a result, Turkish mills are exerting pressure on scrap suppliers to reduce costs. In contrast, the European market maintains relative stability. Limited scrap collection and high logistics costs in Germany have prevented a deeper price collapse.
Outlook for the Global Scrap Market
The global scrap market will likely remain under pressure throughout the summer months. US East Coast operations remain resilient due to strong domestic demand for high-quality scrap. However, export segments on the West Coast face challenges from seasonal slowdowns in Asia. Therefore, traders expect a sideways trend as market participants balance domestic stability against export weakness. Moving forward, stable steelmaking capacity will provide a floor for prices, preventing a sharp, sustained decline in the near term.
ScrapInsight Commentary
In the current global steel scrap market, sluggish demand from Turkey is leading the overall price decline, but domestic markets in Europe and the United States are securing downward rigidity due to supply restrictions. In the second half of the year, recovery in export demand will be a key variable in the price rebound, and changes in the utilization rate and interest rate environment of steelmakers in each country should be closely monitored. In terms of a circular economy, maintaining stability in supply chains will be an important factor in determining future market competitiveness.
