Arab Steel Summit
Arab Steel Summit

A report on global scrap price rise

Scrap prices continued to recover in main markets last week as consumers showed buying interest after a long abstention period from new contracts. Activity in the Turkish market remains low, but it is sufficient for a slight price increase.

The Chinese market also recovered amid limited scrap supply and high steel prices.

In the US, scrap prices are supported by the positive trend in the Turkish market, although the prospects for trading in June are disappointing.

Scrap prices in Türkiye increased in the week of May 29-June 5, 2023, by another 1.3%, or by $5 per tonne, compared to the previous week, to reach $385-390 per tonne, the second increase during the second week in a row.

Generally, scrap prices have risen by 4% or $15 per tonne over the past two weeks.


Trade in the Turkish market rebounded on the eve of the second round of the presidential elections.

Steelmakers began replenishing inventories and increasing scrap purchases amid some recovery in domestic rebar demand.

However, the price increases are modest, as local consumers remain uncertain about prospects due to the lira’s sharp depreciation against foreign currencies, economic woes and lower steel sales.

According to steelmakers, no factor in the Turkish economy can support the scrap prices growth now, and prices have risen not due to domestic producers ramping up steel production but because steel companies are forced to replenish little supplies of raw materials.

Raw material suppliers, in turn, report low scrap collection rates, which does not allow them to sell large quantities at unprofitable prices.


Some market participants expect an improvement in demand and a rise in commodity prices this week as the market in China records recovery and positive signs for the global steel trade, in addition to Türkiye finally forming a new government after the elections.

In the USA market, scrap prices increased in the week of May 26 – June 2, 2023, by 1.7%, or by $6 per tonne, to reach $360 per tonne. At the same time, the price is expected to rise by June 9 to $371 per tonne.

Raw material prices increase in the United States stands due to the situation improved in the Turkish market. However, local players expect lower raw material prices during June trading due to rebar stagnation, hot rolled steel coil prices and scrap high supply in the local market. These factors will determine the price trend of the market during June.

Scrap prices in the Chinese market increased from May 29 to June 5, 2023, by 2.7%, or by $10.3 per tonne, to reach $381 per tonne.

Raw material prices rose last week amid lower supply and higher prices in the steel market.

The utilization level of the factories’ capacities operating in electric arc furnaces decreased by 5% during the week from May 26 to June 2, 2023, compared to the previous week, to reach 45%.

The average daily scrap shipments of all steel companies in the country decreased by 19.8% to reach 393.1 thousand tonnes, and the average daily consumption decreased by 4.36% to reach 447.5 thousand tonnes.

China’s imported scrap market is stagnant, and offers from foreign suppliers are still too high for domestic steel producers.

Ukraine’s scrap exports increased by 7.9% from January to April 2023, to reach 56.4 thousand tonnes, scrap production decreased by 40.8% year-on-year, to reach 366.6 thousand tonnes, and scrap supplies to Ukrainian steel plants decreased by 49.8% year-on-year, to reach 292.8 thousand tonnes.



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