BIR World Mirror: Scrap Supply Tightness Boosts Steel Prices
Metal Recycling News | 2026-02-16 06:58:50
Japan also recorded firmer recycled steel prices due to sluggish generation and ongoing currency depreciation.
By Paul Ploumis
SEATTLE (Scrap Monster): The February 2026 Quarterly Report of BIR’s World Mirror on Ferrous Metals highlights a global recycled steel market shaped by supply constraints and cautious inventory management. Weather-related disruptions in the United States, including winter storms reaching as far as Texas, temporarily closed recycling yards and tightened obsolete scrap inflows. Coupled with firm export demand, this supported stronger domestic pricing.
Japan also recorded firmer recycled steel prices due to sluggish generation and ongoing currency depreciation. Meanwhile, Chinese steel continued to pressure global markets despite a 4.4% decline in crude steel output to 961 million tonnes, as exports surged to a record 119 million tonnes.
India’s steel demand growth in 2025 was driven by construction, infrastructure and automotive sectors, with mills favouring domestic direct reduced iron over imports. Europe faces potential shortages, particularly in Germany, while consolidation looms amid margin pressure. The UK market has seen upheaval following major operator exits.
BIR data show year-on-year declines in recycled steel consumption across China, the EU, the US and Japan, while India and Turkey posted notable gains in usage and global trade positioning.
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What is the biggest risk to the global recycled steel market in 2026?
Frequently Asked Questions
- What factors supported U.S. recycled steel prices?
Weather-related yard closures tightened scrap inflows, and firm export demand reinforced domestic pricing.
- How did China influence global steel markets despite lower production?
Although crude steel output declined 4.4% to 961 million tonnes, record exports of 119 million tonnes increased competitive pressure internationally.
- Which countries reported growth in recycled steel usage?
India and Turkey recorded notable gains in consumption and strengthened their global trade positioning.
