The international scrap metal market is beginning to find its footing following a prolonged period of downward pricing pressure. Market data for August 2026 indicates that the pricing slide, which initiated earlier in June, has noticeably decelerated across major global hubs. While regions like China experienced moderate dips, critical pricing benchmarks in Turkey and the United States flattened out, setting a stable baseline ahead of the traditional autumn restocking period. For global steelmakers and raw material suppliers, this stabilization is largely driven by shifting supply chain dynamics, seasonal logistical constraints, and a gradual resumption of post-holiday end-user demand.
Turkey navigates freight challenges and supply shortages
The Turkish market, which serves as the primary barometer for global seaborne scrap trade, remained relatively stagnant for the bulk of August before experiencing a sharp late-month turnaround. Average prices for imported heavy melting scrap (HMS 1&2 80:20) hovered tightly between $369 and $371 per tonne on a cost and freight (CFR) basis. However, as the month closed, active demand recovery collided with acute raw material shortages.
This supply tightness empowered sellers to significantly raise their quotations. United States suppliers pushed their offers to $380 per tonne CFR, while European sellers elevated their indicative pricing above the $375 per tonne mark. A major factor driving these landed costs higher is the escalation in shipping expenses. Freight rates from the US to Turkey have surged to $50 per tonne, while European routes are commanding $38 per tonne. Despite these elevated costs, underlying demand remains robust. Recent customs data confirms that Turkey’s scrap imports rose by 12.4 percent year-on-year in July to reach 1.66 million tonnes, with the United States acting as the dominant supplier by dispatching over 440,000 tonnes.
European markets find a fragile floor amid logistics hurdles
In Western Europe, scrap metal prices successfully stabilized in August, halting the severe €25 per tonne drop witnessed throughout July. While broader contract prices held firm, specific regional markets like Germany and Austria experienced localized declines of €10 to €15 per tonne. These dips were primarily tied to seasonal maintenance shutdowns at major steel mills and severe logistical bottlenecks.
A critical drop in water levels across major inland waterways, particularly the Rhine and Danube rivers, forced European suppliers to divert heavy bulk freight toward road and rail transport. This sudden logistical shift caused domestic transportation costs to spike sharply. In terms of domestic pricing, German E3 grade scrap slipped slightly by $6 to settle at $320 per tonne on an ex-works basis. Conversely, the Italian market showed early signs of recovery, with delivered scrap prices edging up by $7 to reach $371 per tonne. With the summer holiday period concluding, European mills are gradually resuming operations, effectively putting a floor under regional pricing.
United States pricing shifts from pessimistic to neutral
The domestic market in the United States demonstrated strong resilience, shifting from a pessimistic outlook early in the month to a neutral, stable footing by late August. Average quotations for HMS 1&2 80:20 scrap registered a minor decline, settling at $327 per tonne for East Coast deliveries.
Early in August, domestic mills leveraged high factory inventories and summer maintenance schedules to push procurement prices down. However, the market quickly tightened in the second half of the month. Strict loading regulations and delays in railcar turnarounds effectively constrained supply availability, preventing any further price erosion. Moving into September, domestic market participants anticipate a sideways pricing trend, with expectations that export offers bound for Turkey could gradually appreciate toward the $390 to $395 per tonne CFR range as the fourth quarter begins.
Chinese market faces cautious procurement activity
The Asian market, heavily anchored by China, recorded the sharpest regional decline during the month. Average scrap prices in China fell by 3 percent, representing a drop of $12, to settle at $369 per tonne on a CFR basis.
The primary downward catalyst in China remains the cautious purchasing behavior of end-users. With downstream finished steel demand struggling to gain significant momentum, Chinese electric arc furnace operators adopted a highly measured approach to raw material procurement. Despite this sluggish activity, the market avoided a steeper collapse. A growing shortage of available domestic scrap, combined with a slight firming of finished rolled steel prices in the final days of August, provided just enough support to stabilize the market heading into September.
Strategic outlook for the fourth quarter
The moderation of global price falls in August provides a much-needed level of predictability for the international metals sector. The era of aggressive summer discounting appears to be concluding. As European inland logistics slowly normalize and Turkish mills return to the seaborne market for winter restocking, global scrap pricing is transitioning away from a defensive posture. For secondary steelmakers, securing raw materials at current stabilized rates may prove highly advantageous before anticipated fourth-quarter demand pushes baseline costs higher.