Shredded Scrap Price Trend in Q2 2026 | A Simple Guide to Market Movement, Regional Prices, and Outlook
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The Shredded Scrap Price Trend in Q2 2026 showed a clear upward movement across several major markets, supported by stronger steel mill buying, improving construction activity, and tighter availability of quality ferrous scrap. From April through May, buyers were more active as steel producers, particularly electric arc furnace (EAF) mills, looked to secure enough raw material for production. At the same time, limited scrap collection and higher processing costs made good-quality shredded scrap harder to source. By June, however, the market became more mixed as some regions saw better supply and more cautious buying.
Understanding the Shredded Scrap Market in Q2 2026
Shredded scrap is an important raw material for steelmaking. It is generally made from processed end-of-life steel items such as old vehicles, appliances, machinery, and other ferrous metal products. After collection and processing, the material is prepared for use in steel production.
The price of shredded scrap is influenced by several simple but important factors. Steel mill demand is one of the biggest. When mills are producing more steel, they need more scrap. If scrap collection is low at the same time, buyers compete for limited material, and prices can rise.
𝗣𝗹𝗲𝗮𝘀𝗲 𝘀𝘂𝗯𝗺𝗶𝘁 𝘆𝗼𝘂𝗿 𝗾𝘂𝗲𝗿𝘆 𝘁𝗼 𝗴𝗲𝘁 𝘀𝗵𝗿𝗲𝗱𝗱𝗲𝗱 𝘀𝗰𝗿𝗮𝗽 𝗽𝗿𝗶𝗰𝗲 𝘁𝗿𝗲𝗻𝗱, 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝗿𝗶𝗰𝗲 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀: https://www.price-watch.ai/book-a-demo/This pattern was visible during much of Q2 2026. Steel mills increased procurement activity, while scrap suppliers faced limitations in collecting and processing enough quality material. Higher energy, labour, transportation, and processing expenses also contributed to firm prices.
The Shredded Scrap Price Chart during the quarter reflected this gradual rise, particularly during April and May. Market participants were generally more willing to buy because they wanted to maintain sufficient inventories and avoid supply problems later.
Why Shredded Scrap Prices Increased in April and May
The first two months of Q2 were relatively strong for the shredded scrap market. Several factors worked together to push prices higher.
One important factor was stronger steel production. EAF steelmakers depend heavily on scrap as a major feedstock. When production schedules improve, their need for suitable scrap also increases.Construction activity was another source of support. Better construction demand can increase steel consumption, which can eventually translate into stronger demand for steelmaking raw materials. Manufacturing activity also helped maintain buying interest in several markets.
Supply was another important part of the story. Scrap collection did not increase quickly enough to match the stronger demand in some regions. Collectors and processors also faced higher operating expenses. When suppliers have limited material and higher costs, they generally need higher selling prices to protect their margins.
This created a market where buyers were competing for available shredded scrap. As a result, Shredded Scrap Prices moved upward across the major markets covered during the quarter.
Italy: Strong Growth in Shredded Scrap Prices
Italy recorded a 9.3% increase in its shredded scrap price trend during Q2 2026. The rise was mainly linked to tighter domestic scrap availability and stronger purchasing from steel mills.
April and May were particularly supportive. Steelmakers increased their production schedules and looked to secure additional scrap volumes. This created greater competition for quality shredded scrap.
The situation was also affected by higher energy and logistics expenses. Processing scrap requires equipment, labour, electricity, transportation, and other operating costs. When these expenses rise, they can put additional pressure on the final selling price.
By June, the market began to settle somewhat. Mill inventories had improved, and buyers became more careful about purchasing. Even so, supply remained relatively tight and steel demand continued to provide support.
Italy's shredded scrap prices increased another 2.13% in June 2026. The smaller monthly increase compared with the earlier part of the quarter suggested that the market was becoming more balanced rather than continuing its earlier rapid upward movement.
USA: Strong Q2 Increase Followed by a June Correction
The United States recorded a 7.43% increase in its shredded scrap price trend during Q2 2026. Strong domestic steel production and active purchasing from EAF mills were important drivers.
During April and May, steel mills were interested in replenishing inventories. At the same time, the availability of prime-quality shredded scrap was relatively limited. This combination created stronger competition among buyers.
Stable construction and manufacturing activity also helped support steel demand. When steel demand remains healthy, mills generally have a greater reason to maintain production and purchase scrap.
However, the market changed direction in June. Supply flows improved, mills became more cautious, and inventory levels became more comfortable. This reduced the urgency to purchase additional material.
As a result, US Shredded Scrap Prices declined by 3.51% in June 2026. The decline does not necessarily mean that the entire market had become weak. Instead, it reflected a correction after strong buying during the earlier part of the quarter.
Germany: Firm Prices Despite a Small June Decline
Germany recorded a 7.68% increase in shredded scrap prices during Q2 2026. Stronger purchasing from steel mills and limited scrap collection were important reasons for the increase.
During April and May, steelmakers increased their restocking activity. Downstream steel demand also improved, encouraging mills to compete for available scrap.
The supply side remained an important concern. High-quality shredded scrap was not always easy to obtain, while energy, labour, and processing expenses remained elevated. These conditions allowed suppliers to maintain relatively firm price levels.
June brought a small change. As mill inventories improved and spot-market activity slowed, buyers became more cautious. Germany's shredded scrap prices declined by just 0.42% in June 2026.
The small decline indicates that the market remained relatively firm. Supply and demand were moving closer to balance, but there was still enough underlying demand to prevent a major price drop.
Spain: The Strongest Q2 Increase Among the Markets Covered
Spain recorded the largest quarterly increase among the four markets discussed, with shredded scrap prices rising 10.79% in Q2 2026.The main support came from stronger domestic steelmaking activity, tighter scrap availability, and higher procurement requirements from EAF producers.
April and May were strong months. Steel mills increased restocking activity, while available shredded scrap volumes remained limited. Higher processing, energy, and logistics expenses also supported higher prices.
Another factor was regional demand. Reduced availability of export-quality scrap combined with stronger European demand created additional competition for suitable material.
In June, however, the pace of growth slowed considerably. Shredded scrap prices increased by 1.01% as steady steel demand and relatively limited supply continued to support the market. At the same time, improved inventories and more careful purchasing prevented prices from rising as quickly as they had earlier in the quarter.
What the Shredded Scrap Price Index Shows
The Shredded Scrap Price Index for Q2 2026 broadly reflected a market that became stronger during April and May before moving toward a more balanced position in June.
The index movement is useful because it helps show the direction of the market rather than focusing on only one transaction. When prices rise across several markets, it generally suggests stronger underlying demand or tighter supply conditions.
The Q2 movement shows both sides of the market. On one side, EAF production and steel demand supported scrap consumption. On the other side, limited collection and higher processing costs restricted supply.
By June, the situation became less one-sided. Some markets continued to experience supply-related support, while others saw prices stabilize or decline because availability improved and buyers reduced their purchasing urgency.
What Influenced the Shredded Scrap Price Trend?
Several factors were behind the market movement in Q2 2026:
- Steel mill demand:
Higher steel production increased the need for scrap, especially among EAF producers.
- Scrap collection:
Limited collection volumes reduced the amount of material available to processors and mills.
- Processing costs:
Higher operating expenses made it more expensive to prepare scrap for steelmaking.
- Energy and transportation costs:
Rising costs in these areas added pressure throughout the supply chain.
- Inventory levels:
When mills had lower inventories, they bought more aggressively. Once inventories improved, purchasing became more cautious.
- Finished steel demand:
Construction and manufacturing activity affected the willingness of mills to maintain production.
- Regional supply differences:
Each market had its own balance between local collection, domestic demand, and export availability.
These factors explain why the price movement was not identical in every country.
What the Q2 2026 Market Tells Us
One of the clearest lessons from Q2 is that shredded scrap prices can change quickly when supply and demand move out of balance.
The strong increases in Italy, the USA, Germany, and Spain during the quarter show how important steel mill purchasing can be. When buyers need material at the same time that collection remains limited, prices can move higher quite quickly.The June developments also show why monthly movements should be viewed carefully. A price decline in one month does not automatically mean that the wider market has become weak. In the USA, for example, prices declined after stronger buying earlier in the quarter. In Germany, the decline was very small, while Italy and Spain still recorded monthly increases.
This difference between markets is important for anyone following scrap prices. Regional supply, mill inventories, production schedules, and local buying behaviour can all create different outcomes.
𝗣𝗹𝗲𝗮𝘀𝗲 𝘀𝘂𝗯𝗺𝗶𝘁 𝘆𝗼𝘂𝗿 𝗾𝘂𝗲𝗿𝘆 𝘁𝗼 𝗴𝗲𝘁 𝘀𝗵𝗿𝗲𝗱𝗱𝗲𝗱 𝘀𝗰𝗿𝗮𝗽 𝗽𝗿𝗶𝗰𝗲 𝘁𝗿𝗲𝗻𝗱, 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝗿𝗶𝗰𝗲 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀: https://www.price-watch.ai/book-a-demo/Shredded Scrap Price Outlook
Looking beyond Q2 2026, the market is likely to remain sensitive to steel production and scrap availability.
If EAF steel production stays strong and scrap collection remains limited, shredded scrap prices could continue to receive support. Higher operating and transportation costs may also keep suppliers cautious about lowering prices.
On the other hand, improved scrap collection and comfortable mill inventories could reduce buying pressure. If finished steel demand becomes weaker, mills may also reduce production or delay purchases, creating downward pressure on scrap prices.
For this reason, the most important signals to watch are steel mill production, scrap collection volumes, inventory levels, construction demand, and changes in procurement activity.
The Shredded Scrap Price Trend in Q2 2026 was generally positive, with all four markets covered recording quarterly increases. Spain posted the strongest increase at 10.79%, followed by Italy at 9.3%, Germany at 7.68%, and the USA at 7.43%.
The main reasons were stronger steel mill procurement, improving steel demand, limited scrap collection, and higher processing and logistics costs. April and May were especially strong as mills competed for available material and rebuilt inventories.
June brought a more mixed picture. Italy and Spain continued to see modest price increases, while Germany and the USA experienced declines. This suggests that the market was gradually moving from a period of tight supply and aggressive buying toward a more balanced environment.
Overall, Q2 2026 showed that Shredded Scrap Prices remain closely connected to steel production, scrap availability, and purchasing behaviour. The Shredded Scrap Price Chart and Shredded Scrap Price Index both point to a quarter that began with strong upward momentum and ended with greater regional differences.
For buyers, sellers, and anyone following the steel raw material market, the key takeaway is simple: shredded scrap prices are not driven by one factor alone. Supply, demand, production, inventories, and operating costs all work together. Watching these factors can provide a clearer understanding of where the market may move next.
𝐀𝐛𝐨𝐮𝐭 𝐏𝐫𝐢𝐜𝐞-𝐖𝐚𝐭𝐜𝐡
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