Global Ferrous Scrap Markets Post Mixed Trends in Feb 2026

Why It Matters

The divergent price movements affect steelmakers’ feedstock costs and shape procurement strategies, underscoring regional demand, inventory and logistics sensitivities.

Key Takeaways

• Turkey HMS 1&2 fell 0.6% to $373.1/t.
• US East Coast HMS 1/2 dropped 2.2% to $333/t.
• Europe E3 scrap rose to €300/t; Italy €330/t.
• China scrap gains linked to recovering EAF steel demand.
• Supply constraints and logistics tighten US, Turkey markets.

Pulse Analysis

The February 2026 ferrous scrap market illustrated a classic split between regions where demand outpaces supply and those where excess inventory dampens pricing. In Europe and China, tighter scrap availability, winter‑related logistics bottlenecks and a rebound in electric‑arc‑furnace (EAF) operations pushed prices upward, reinforcing the material’s role as a cost‑effective feedstock for low‑carbon steel production. By contrast, the United States and Turkey faced weaker rebar orders, higher inventories and competitive pressure from imported billets and pig iron, resulting in modest price declines.

Turkey’s HMS 1&2 (80:20) price slipped 0.6% to $373.1 per tonne, reflecting steel mills’ caution amid Ramadan‑related cash constraints and a surge in alternative raw material imports. Freight cost volatility further limited price erosion, as exporters struggled to move inventory. In the U.S. East Coast, HMS 1/2 fell 2.2% to $333 per tonne FOB, a move driven by soft construction activity and lingering supply gluts from domestic collection points. Both markets underscore how seasonal cash flow pressures and material substitution can outweigh pure supply‑demand fundamentals.

For steel producers, the divergent price signals suggest a strategic pivot toward more flexible sourcing. European mills may lock in higher‑priced scrap to secure EAF feedstock, while U.S. and Turkish operators could increase reliance on primary iron or low‑cost billets to preserve margins. Investors should monitor freight indices, Ramadan‑season cash flows, and China’s EAF capacity expansions, as these variables will likely dictate the next pricing cycle. Ultimately, the mixed February trends highlight the fragility of the global ferrous scrap supply chain and the importance of adaptive procurement strategies.