The global steel market is witnessing a shift in Turkey’s recycled steel imports, with a notable decline in shipments from the U.S. in favor of Russian ferrous scrap. This transition, documented in early May 2025, reflects broader geopolitical and economic trends affecting global trade. While the U.S. and Turkey have historically enjoyed strong trade relations in recycled steel, the first quarter of 2025 revealed a 23% drop in U.S. exports to Turkey, signaling potential changes in the global steel supply chain.
Steel Imports from the U.S. Decline
According to reports from Davis Index, Turkish mills reduced their imports of U.S. ferrous scrap by 225,000 metric tons in the first quarter of 2025 compared to the previous year. This drop in volume is attributed to several factors, including a rise in domestic recycled steel production in Turkey, partially driven by post-earthquake cleanup efforts, and a decrease in Turkish steel output in early 2025.
Russian Scrap Gains Market Share
While U.S. exports have dropped, Russian shipments have surged by 115% in the same period. The shift toward Russian scrap imports reflects not only changes in global supply chains but also the geopolitical landscape. Turkey’s decision to increasingly rely on Russian scrap is evident, with an increase of 97,000 metric tons of Russian ferrous scrap, a significant rise in comparison to the decline in U.S. exports.
Economic Impact: Rising Prices and Uncertainty
This shift is contributing to fluctuating scrap prices in the U.S. Despite a short-term spike in scrap prices on the East Coast, Turkey’s reduced demand for U.S. scrap has caused prices to fall significantly. By early May 2025, prices for bulk shipments of mixed No. 1 and No. 2 heavy melting steel (HMS) from New York dropped from $356 per metric ton in late March to around $295-$299 per metric ton.
Impact of Tariffs on U.S. Steel Supply Chain
The reduction in U.S. scrap exports to Turkey is compounded by ongoing tariff concerns. The Trump administration’s tariffs have created uncertainty in the steel market, with some domestic processors expressing worry about how these tariffs will affect both scrap supply and steel demand. As of early May, steel output figures from the American Iron and Steel Institute (AISI) show a slight decline in U.S. steel production, though recent weekly figures indicate a small recovery.
The Bigger Picture: A Global Steel Market Shift
The decrease in U.S. scrap exports to Turkey is part of a broader global trend. Countries like the U.K. and several European nations have also seen a reduction in their steel exports to Turkey, while Russia remains a significant player. As global trade patterns shift, the steel industry faces new challenges in balancing domestic production with international trade dynamics.
Conclusion
As Turkey increasingly turns to Russian scrap, the U.S. scrap export market is feeling the pressure. Steel prices are fluctuating, and U.S. producers are uncertain about the long-term impact of tariffs and supply chain disruptions. For now, it appears that Turkey’s shift in import preferences will continue to reshape the global steel trade landscape, with implications for both the U.S. and Russian economies.
Stay informed on global trade dynamics and their impact on industries like steel by following our ongoing coverage of international market trends. For more insights on the U.S.-Russia steel trade, check out our in-depth article on U.S.-Russia steel exports.
