Prices continued to rise in Europe and China, while falling slightly in Turkey and the US

The global ferrous scrap market showed mixed dynamics in February 2026 after steady growth in January. In particular, the upward trend continued in the EU and Chinese markets, albeit at a slower pace, while supply declined in the US and Turkey. Despite the fluctuations, all markets are currently at a higher level than at the end of 2025.

Turkey

On the Turkish market, prices for HMS 1&2 80:20 scrap fell by 0.6% between February 6 and March 6, 2026, after rising by 1.9% in January, to $373.1/t CFR.

In February, the Turkish market was under moderate pressure, with steelmakers holding back purchases due to weak demand for rebar, high inventories, and financial constraints exacerbated by Ramadan.

The availability of alternatives in the form of imported billets and pig iron limited mills’ willingness to pay more for scrap. At the same time, a deeper decline was prevented by raw material shortages in the EU and the US, unfavorable weather, snowfall on the east coast of the US, rising freight rates, and high purchase prices on suppliers’ domestic markets.

At the end of the period, the key driver was the devaluation of the euro, which allowed Turkish mills to put pressure on European prices. In early March, the war in the Middle East added further uncertainty: freight and insurance costs rose, but actual transactions still recorded a decline in prices.

In the short term, the market is likely to remain under pressure, although the potential for decline appears limited due to expensive freight and weak supply in exporting countries.

EU

In the EU, scrap prices continued the trend seen at the beginning of the year and rose by 1-5%. In particular, in Germany, offers for E3 scrap rose by 5.3% in February to €300/t ex-works, although they reached €305/t. In Italy, prices reached €330/t ex-works, up 1.5% compared to January. Growth since the beginning of the year is estimated at 11.1% for raw materials in Germany and 5.6% in Italy.

In February, the European scrap market remained on an upward trend, mainly due to limited supply. In Germany and Austria, growth was supported by winter frosts, which complicated logistics, particularly river transport, as well as weaker imports from neighboring countries. In Italy, the drivers were low collection rates, especially for automotive grades, and steady demand for high-quality raw materials from steel mills. At the same time, further price increases were held back by weak demand for finished rolled products, especially rebar, high electricity and gas costs, and the reluctance of mills to overpay for raw materials without support from steel sales.

In early March, the market entered a pause phase. Some Italian plants have already started to lower their purchase prices. Further stabilization with local downward corrections is expected, although low scrap collection rates will continue to limit the depth of the decline.

United States

On the US East Coast market, HMS 1/2 Scrap (80:20) lost 2.2% in price in February after rising 2.3% in January. Offers are currently at $333/t FOB, which is still 1.1% higher than at the end of 2025.

The US scrap market remained largely supply-driven last month. Key factors were winter storms, cold weather, delays in site operations, logistics, and raw material collection, which initially supported domestic prices.

Mills were forced to raise purchase prices, especially for shredded and high-quality grades, to secure supply flows. At the same time, the situation was weaker on the export front. Turkish buyers resisted higher prices, while rising freight costs and weak margins on finished steel limited the scope for new deals. By the middle of the month, the market had shifted from an upward momentum to relative stability, as improved weather gradually reduced the risk of shortages and exports no longer provided an additional boost.

In early March, the market entered a phase of relative stability. In the short term, stabilization or a moderate downward correction is likely if scrap collection and shipments improve, although high freight rates and an unstable external environment will prevent a deeper decline.

China

In China, prices rose for both domestic and foreign scrap. In particular, domestic market offers added 1.1% in price after 4.5% in January and are currently estimated at $349.2/t. Foreign raw materials added 2.2% after 6.3% at the beginning of the year, to $347.5/t CFR.

During February, the Chinese scrap market grew moderately. After the holiday lull, supply recovered more slowly than demand from electric arc furnace mills, which supported domestic prices. The drivers were the gradual restart of smelting and expectations of increased purchases in March.

The import segment grew faster due to higher Japanese export prices and currency factors, although real demand remained limited due to the preference for domestic raw materials over imported ones. At the same time, the potential for further growth was held back by weak recovery in construction and sluggish end demand for steel. In the near term, the market is likely to remain relatively stable, but without a sharp upturn.

Courtesy: https://gmk.center/en