BIR: Turkish Steel Buying Sparks Global Ferrous Scrap Rally

Why It Matters

The price rally tightens global scrap supply, raising costs for manufacturers and accelerating the industry’s shift toward recycled‑steel production.

Key Takeaways

• Turkey bought 30+ cargoes in three days, driving $25/tonne price jump.
• U.S. export scrap prices rose as mills competed with Turkish buyers.
• Europe’s scrap market strengthened amid supply shortages, despite weak demand.
• Global recycled‑steel use hit 480 Mt, up 4.5% year‑over‑year.
• Crude steel output fell 2.2%, highlighting scrap’s growing importance.

Pulse Analysis

Turkey’s sudden buying spree reflects a strategic pivot by its steelmakers to secure low‑cost feedstock amid geopolitical uncertainty. By snapping up over 30 cargoes in a single weekend, Turkish mills injected fresh demand into the deep‑sea scrap market, pushing spot prices by roughly $25 per tonne. This activity not only reshaped price curves but also signaled confidence in recycled‑steel economics, prompting other major producers to reassess their sourcing strategies.

In the United States, the Turkish surge intensified competition for available scrap, nudging export prices upward as domestic mills vied with overseas buyers. European markets experienced a similar uplift, driven by tighter supply and import restrictions, even as regional construction demand remained muted. Meanwhile, Asian buyers faced divergent trends: India’s imports fell on higher costs and weak construction, Bangladesh’s volumes dropped 25%, while Japan saw modest gains thanks to a weaker yen and steady domestic demand. These dynamics illustrate how a single nation’s procurement decisions can ripple through global supply chains, affecting pricing and inventory levels across continents.

The broader implication is the accelerating importance of recycled steel. Global consumption of scrap‑based steel grew 4.5% in 2025 to 480 million tonnes, outpacing a 2.2% decline in crude steel production. This shift aligns with sustainability goals and cost pressures, as manufacturers seek lower‑carbon inputs and more predictable pricing. As scrap becomes a larger share of total steel output, market participants will likely invest in better traceability, logistics, and processing technologies to capitalize on the growing demand for greener, cost‑effective steel solutions.