Scrap trading has always been sensitive to freight economics and trade policy, but 2026 is proving to be an especially dynamic year for ferrous and non-ferrous flows, with several structural shifts reshaping where material moves and at what price.
Mills in South and Southeast Asia continue to absorb a growing share of global scrap exports, while European generators face rising domestic demand from EAF expansion — a trend that's tightening supply available for export and pushing up landed prices in traditional import markets.
Regional Demand Shifts
India's steel sector continues to expand EAF capacity to meet domestic infrastructure and construction demand, making the country an increasingly important buyer of both domestic and imported ferrous scrap. Meanwhile, Middle Eastern mills — particularly in the UAE and Saudi Arabia — are scaling up recycled-content steel production as part of broader industrial diversification strategies, creating new demand centers that didn't carry the same weight a decade ago.
On the supply side, European scrap generation remains strong, but a growing share is being retained domestically as EU mills lean further into EAF production to meet emissions targets — meaning less material is available for traditional export routes to Turkey and North Africa.
Freight and Trade Policy Pressures
Freight rates remain a critical variable. Container and bulk freight volatility over the past two years has made landed cost far less predictable than it once was, pushing many trading desks toward more flexible, multi-route sourcing strategies rather than relying on a single fixed corridor. Tariff and trade policy shifts in several major markets have added another layer of complexity, occasionally redirecting flows on short notice.
Our trading desks are positioned across four continents specifically to navigate this volatility — matching supply and demand in real time as routes shift, and giving clients on both sides of a trade flexibility that a single-region trading operation simply can't match.
Looking into the back half of 2026, we expect continued tightness in premium-grade ferrous scrap, sustained demand growth from South and Southeast Asian EAF capacity, and ongoing freight volatility that will reward traders with genuinely global sourcing networks over those tied to a single corridor.