The Turkish market was under pressure from a supply shortage and rising freight rates due to the military conflict in the Middle East

As of mid-March 2026, the global scrap market was characterized by a predominantly upward price trend, which was most pronounced in Turkey and the United States. At the same time, the market in the European Union entered a stabilization phase, while price increases in China remained minimal.

Turkey

In Turkey, prices for HMS 1&2 80:20 scrap rose by 3.9% between February 20 and March 23, reaching $388.3/t CFR—the highest level since July 2024. Compared to the start of the year, prices have increased by 5.3%.

The Turkish market was one of the most strained during this period. It was simultaneously pressured by a supply shortage, rising freight rates, and geopolitical risks in the Middle East. In late February, mills tried to curb purchases due to weak demand for rebar and low margins, but sellers held firm due to limited availability of raw materials in the EU and the US. An additional factor was unfavorable weather conditions on the US East Coast, which complicated procurement and exports.

In March, pressure on prices intensified due to rising costs of oil and logistics, as well as the virtual disappearance of cheap alternatives in the form of Asian billets. Ahead of the Eid holiday, Turkish mills stepped up their purchasing for April, which strengthened suppliers’ positions. At the same time, weak sales of finished rolled products prevented prices from rising further. In the short term, the market is likely to remain subdued, with prices hovering near current levels.

EU

The EU market saw a downward trend during the period. Specifically, in Germany, scrap prices (E3) fell by 1.3% to €300/t Ex-works, a level that has held steady since February 27. In Italy, raw material (E3) has remained stable at €325/t Delivered Basis since February 27, although offers rose to €330/t in early March. Despite a slight stagnation, prices are 11.1% higher compared to the start of the year for the German market and 4% higher for Italy.

The European market in March appeared significantly calmer than the Turkish or American markets. While high prices in February were supported by weak supply, cold weather, and logistical disruptions—particularly in Germany—this support weakened in early spring. In Italy, the shortage of high-quality scrap, particularly automotive grades, remained a key factor, but steelmakers were no longer willing to support further increases in purchase prices.

Additional uncertainty was created by the conflict between the U.S. and Iran, which led to rising energy costs and forced some mills to revise their production plans. As a result, the market entered a wait-and-see phase: prices stabilized in Germany due to sufficient supply, and in Italy due to a balance between high scrap costs and mills’ reluctance to pay more. In April, the most likely scenario appears to be stabilization with the risk of further increases due to energy and transportation costs.

United States

On the U.S. East Coast, scrap prices rose by 3.6% between February 20 and March 23, reaching $347/t FOB. This is the highest level since April of last year.

In February, the U.S. market was still operating under winter conditions. Storms, logistics delays, and uneven collection kept raw material prices high, while domestic demand from steelmakers remained fairly stable. Good prices for flat steel and the relatively high cost of alternative raw materials provided additional support.

But by March, the balance began to shift. As the weather improved, scrap supply increased, and exports became less attractive due to a surge in freight and insurance costs. This primarily impacted shipments to Turkey, where American raw materials lost their competitiveness compared to European ones. As a result, the market gradually shifted from a deficit to a more balanced state. In April, the greatest pressure will likely be felt by grades of scrap from end-of-life vehicles, while premium grades have more stable prospects.

China

In China, scrap prices saw a slight increase of around 1%. Specifically, domestically sourced scrap rose by 0.8% over the period ($349.9/t), while imported offers stood at $345/t CFR (+0.7%).

The Chinese segment showed the least volatility. After the Lunar New Year, the domestic market received brief support due to a slower recovery in supply compared to consumption. Additionally, sentiment was influenced by expectations of a more active ramp-up of electric arc furnace capacity in early March.

However, this factor did not develop into a strong upward trend. Construction activity recovered sluggishly, and the number of new projects remained limited, so final demand for steel did not provide grounds for a sharp increase in purchases.

The import market looked even weaker. Japanese suppliers raised prices, but such shipments remained economically unprofitable for Chinese buyers. Most likely, the Chinese market will remain calm in the near future, with minimal fluctuations.