According to the “Ferrous Metals World Mirror – Quarterly Report May 2026” published by the Bureau of International Recycling (BIR), while steel producers in Türkiye followed a cautious purchasing strategy at the beginning of the year, they returned aggressively to the market in March and rapidly increased scrap purchases. With this sudden rise in demand, deep-sea scrap prices increased by more than $25 per ton compared to the January average.
The report stated that geopolitical developments in the Middle East, along with the tight monetary policy stance of the Central Bank of the Republic of Türkiye, played an important role behind this shift. It was noted that tighter financing conditions suppressed domestic demand in the first quarter of the year, but purchases accelerated in March due to the need for stock replenishment and changing price expectations.
Significant changes were also observed in the sources of Türkiye’s scrap imports. In January, scrap supply from the United States increased by more than 140%, while shipments from Europe recorded double-digit declines.
On the U.S. side, it was stated that rising export prices approached domestic market levels, while competition among American steel producers for the same scrap supported prices.
In the European steel market, significant price increases were recorded in the first quarter of 2026, particularly in hot-rolled coil and construction steel. The main reasons behind these increases were cited as supply shortages, import restrictions, and rising costs. However, demand in Germany and Scandinavian countries was reported to remain weak and uneven.
In the United Kingdom, competition remained strong particularly for shredder feed demand, while rising logistics costs continued to put upward pressure on prices.
In Asia, imports in India became less profitable due to rising scrap prices and weak demand, leading to lower shipments in the first quarter of the year. In Bangladesh, purchases also slowed because of high energy costs and financing difficulties.
In Japan, the upward trend in the scrap market continued thanks to a recovery in domestic demand, strong export performance, and a weak yen.
In China, crude steel production is expected to show a limited decline in 2026, while structural oversupply was said to be increasing export pressure. In Taiwan, scrap imports reportedly declined by approximately 30% in the first quarter of the year.
In Gulf Cooperation Council countries, the shift toward scrap-based production increased, while Saudi Arabia introduced state-coordinated scrap import mechanisms to ensure supply security.
The BIR report also noted that Türkiye remained the world’s largest scrap importer in 2025 with 18.76 million tons of imports, although purchases declined by 6.6% compared to the previous year. India ranked second with 8.04 million tons, recording a 5% decrease.
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