- Trade policies increasingly reshape global recycled steel trade flows
- Domestic metallics gain ground amid freight and geopolitical risks
Recycled steel consumption showed mixed trends, with India recording the strongest growth of 22.6% to 11.4 million tonnes, whereas China and the EU-27 registered declines, even as global crude steel production fell 2.1% y-o-y to 459.8 million tonnes during Q1 2026, said the Chairman of the ferrous division at the Bureau of International Recycling (BIR), Rolf Willeke, quoting Worldsteel data.
He further noted that Turkiye remained the world’s largest recycled steel importer with 4.75 million tonnes during the quarter, while India’s imports fell 46% y-o-y to 1.24 million tonnes. The EU-27 retained its position as the leading recycled steel exporter despite an 11.3% decline in shipments, followed by the USA, while Japan and the UK also recorded lower export volumes during the period.
Factors impacting the global recycled steel market
The BIR Ferrous Division highlighted that geopolitical tensions, freight volatility and evolving trade policies remained key market drivers during the quarter, encouraging mills to favour domestic recycled steel, DRI and alternative metallics. Despite near-term uncertainty, recycled steel continues to play a vital role in global steel decarbonisation.
Region-wise insights
Europe
Denis Reuter of TSR Recycling GmbH & Co. KG (Germany), board member of the BIR Ferrous Division, stated that Germany’s recycled steel market remained resilient during the second quarter, supported by crude steel production of 15.7 million tonnes during January-May. However, tight recycled steel availability, logistical bottlenecks, high energy costs and weak industrial demand continued to challenge the market.
Mogens Bach Christensen of H.J. Hansen Genvindingsindustri A/S (Denmark) added that the Scandinavian recycled steel market remained oversupplied during the second quarter, with weak Turkish demand, higher billet consumption and volatile freight rates weighing on exports. HMS 80:20 prices declined around 7% in June, prompting exporters to explore alternative markets such as Morocco and Spain.
Meanwhile, Tom Bird of Enicor (UK) highlighted that the UK recycled steel market experienced significant volatility during the quarter. HMS export prices into Turkiye initially climbed to around $410/t amid disruptions to Iranian billet exports and strong Turkish buying before retreating to around $360/t following easing geopolitical tensions and the resumption of Iranian billet shipments. Container export prices weakened by GBP 10-15/t, UK dockside prices declined by GBP 15-20/t, while competition for feedstock remained firm despite subdued domestic steel consumption and uncertainty surrounding major steelmaking investments.
Turkiye
Abhijeet Mahanta of Stelaris Resources AG (Switzerland), board member of the BIR Ferrous Division, highlighted that Turkiye’s recycled steel market remained highly volatile during the second quarter, with HMS 80:20 prices peaking near $410/t CFR in May before easing to around $388/t CFR in June. Weak finished steel demand, elevated energy costs and cautious mill procurement continued to pressure market sentiment despite steady import volumes.
United States
George Adams of SA Recycling (USA), board member of the BIR Ferrous Division, stated that the US recycled steel market remained resilient during the second quarter, supported by strong domestic steel demand, mill utilisation above 80% and HRC prices nearing $1,150/t. Despite weaker export markets, balanced supply-demand fundamentals kept recycled steel prices relatively stable heading into the third quarter.
Asia
Michael Gaylard of SIMS Ltd (USA), board member of the BIR Ferrous Division, noted that China’s steel market remained under pressure during the second quarter as finished steel exports declined 8.1% y-o-y to 44.55 million tonnes during the first five months following the introduction of a new export licensing system. Weak property and construction activity, combined with structural overcapacity, continued to weigh on domestic steel demand, although Chinese producers remained competitive across Asia, the Middle East and Africa.
Sanjay Mehta of MRAI (India), highlighted that India’s recycled steel market showed improving sentiment during the second quarter despite cautious import buying. Stronger domestic steel production, easing logistics issues and stabilising global trade supported confidence, although mills continued to favour domestic recycled steel and DRI over imports because of elevated freight costs, rupee depreciation and weak import economics. UK-origin HMS 80:20 increased from around $345/t CFR Nhava Sheva in April to $365/t in May before easing to $335-340/t in June, while European-origin shredded averaged $383/t CFR and HMS 80:20 averaged $363/t during the quarter.
Cost competitiveness continued to favour domestic metallics, with imported recycled steel remaining costlier than DRI, limiting imports and keeping procurement largely containerised. India’s recycled steel imports declined more than 55% y-o-y to around 1 million tonnes in Q1 2026, although crude steel production rose 11% to 44.5 million tonnes. Looking ahead, improving steel demand is expected to gradually support recycled steel consumption, with freight costs and global developments continuing to influence buying decisions.
Meanwhile, Ted Taya of Shinsei Scrap Co. Ltd (Japan) stated that Japan’s domestic recycled steel market remained firm through May, supported by successive purchase price increases of around JPY 1,000/t despite softer export demand. The June Kanto export tender settled at JPY 54,506/t for a 20,000-t cargo, marking the first monthly decline in 11 months, while May recycled steel exports fell 10.8% m-o-m to 595,506 t even as crude steel production increased 1.7% y-o-y to 6.95 mnt.
South Africa and Middle East
Quintin Starkey of the Metal Recyclers Association of South Africa stated that South Africa’s recycled steel market remained dominated by policy uncertainty, with industry bodies challenging the Price Preference System (PPS), arguing it had suppressed domestic recycled steel prices by ZAR 1,000-1,500/t below international levels while distorting market competitiveness.
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