The Heavy Melting Scrap Price Trend moved higher during the second quarter of 2026, supported by steady steel production, better construction activity, and healthy demand from manufacturing industries. Across major markets, steelmakers increased their buying of scrap, particularly during April and May, while seasonal supply limitations made good-quality material harder to source. As a result, Heavy Melting Scrap Prices generally moved upward through the first part of the quarter before losing some strength in June as scrap availability improved and steelmakers became more cautious.
Heavy melting scrap, commonly referred to as HMS, is an important raw material for steel production. It is widely used by electric arc furnace (EAF) steelmakers because scrap can be melted and converted into new steel products. For buyers and sellers, changes in HMS prices can therefore provide useful information about the wider steel market. When mills are producing more steel and need additional raw material, demand for scrap normally increases. On the other hand, when steel demand slows or scrap collection improves, prices can come under pressure.
Q2 2026 Heavy Melting Scrap Price Trend
The second quarter of 2026 followed a fairly clear pattern. Prices strengthened during April and May and then started to decline in June.
At the beginning of the quarter, scrap supply was relatively tight in several important markets. Seasonal factors affected collection activity, while steelmakers were actively looking for material. At the same time, stronger construction and manufacturing activity helped support steel consumption.
This combination created a competitive buying environment. Mills needed scrap, but suppliers did not always have enough readily available material. Buyers therefore had to compete more actively for suitable HMS grades.
The HMS Scrap Price Trend was also influenced by export demand. When overseas buyers became more active, suppliers had additional opportunities to sell material outside their domestic markets. This helped keep prices firm during April and May.
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However, the market began to change as the quarter progressed. Scrap collection improved, inventories became more comfortable, and some steelmakers reduced the urgency of their purchases. By June, the balance between supply and demand had become more normal.
This explains why the overall Q2 trend remained positive even though prices declined toward the end of the quarter.
What Happened to HMS Prices in April and May?
April and May were the strongest months for the market.
Steel production activity remained resilient, particularly among EAF producers. These mills depend heavily on ferrous scrap, so increased production usually means greater demand for HMS.
Construction activity also played an important role. As construction projects progressed, demand for finished steel products improved. This encouraged steel producers to maintain or increase production, which in turn supported demand for scrap.
Another important factor was limited scrap generation. When fewer old structures, vehicles, machinery, and other metal products enter the recycling system, the supply of obsolete scrap can become tighter.
Transportation, collection, and processing costs added another layer of pressure. When it costs more to collect, prepare, and move scrap, sellers generally need stronger market prices to maintain margins.
These factors combined to push HMS Prices higher across the major markets during the first two months of Q2.
Heavy Melting Scrap Price Chart: Q2 2026 Market Direction
The Heavy Melting Scrap Price Chart for Q2 2026 would show a noticeable upward movement from April into May, followed by a correction in June.
The chart pattern is important because it shows that the market did not move higher continuously throughout the quarter. Instead, the market went through two different stages.
During April and May, the chart reflected:
- Strong steel mill purchasing
- Limited scrap availability
- Healthy construction and manufacturing demand
- Firm export interest
- Higher collection and transportation costs
- Increased competition for quality HMS material
During June, the direction changed as:
- Scrap collection improved
- Inventories became more sufficient
- Export buying became less aggressive
- Steelmakers adopted a more cautious purchasing approach
- Downstream steel demand softened
- Supply and demand moved closer to balance
Therefore, the Q2 chart should be viewed as an upward trend followed by a moderate correction rather than a straight-line increase.
Netherlands Heavy Melting Scrap Price Trend
The Netherlands recorded a 6.49% increase in its Heavy Melting Scrap price during Q2 2026.
The market was supported by improving steel production and stronger purchasing activity from EAF mills. Scrap availability across Northwest Europe was relatively tight during April and May, partly because collection rates were lower and competition for available feedstock increased.
Higher finished steel orders also encouraged mills to purchase additional scrap. Export demand from important international destinations added further support.
Limited spot availability made the market more competitive. Sellers were in a stronger position when buyers needed immediate material, while higher freight and processing costs also contributed to increased transaction values.
However, the market became more balanced toward the end of the quarter. Scrap inflows improved, export demand eased, and steelmakers became more careful with their purchasing decisions.
In June 2026, Heavy Melting Scrap Prices in the Netherlands declined by 3.16%. Sufficient inventories, softer export buying, and more stable steel production requirements reduced the pressure that had pushed prices higher earlier in the quarter.
USA Heavy Melting Scrap Price Trend
The United States recorded one of the stronger increases during Q2 2026, with Heavy Melting Scrap prices rising by 8.46%.
The main support came from robust domestic steel production and healthy purchasing by EAF mills. Seasonal improvements in construction and manufacturing helped strengthen demand for finished steel, encouraging mills to secure additional scrap supplies.
At the same time, obsolete scrap generation remained constrained. This meant that the market had to deal with stronger demand without a matching increase in available material.
Export demand also contributed to the firm market environment. When domestic and international buyers compete for similar grades of scrap, suppliers can achieve higher prices.
Collection, transportation, and processing costs provided additional support.
The situation became less tight in June. Scrap flows improved, export interest softened, and mill inventories became more balanced. As a result, buyers had less reason to purchase aggressively.
Heavy Melting Scrap Prices in the USA declined by 1.03% in June 2026, reflecting more comfortable inventory levels and cautious purchasing by steelmakers.
Turkey Heavy Melting Scrap Price Trend
Turkey recorded a 7.38% increase in Heavy Melting Scrap prices during Q2 2026.
Turkey's large export-oriented steel sector supported scrap demand during April and May. EAF producers required consistent volumes of raw material, while stronger crude steel production requirements encouraged additional procurement.
High-quality ferrous scrap was not always readily available. At the same time, international scrap offers remained firm and buyers from different regions competed for available material.
Replacement costs and freight expenses also supported the bullish market environment. When imported scrap becomes more expensive to replace, buyers may accept higher prices to secure sufficient volumes.
As the quarter moved toward June, however, the market started to cool. Scrap collection improved, mills became more cautious, and downstream steel demand weakened.
In June 2026, Heavy Melting Scrap Prices in Turkey declined by 1.86%. Better inventory coverage, slower purchasing activity, and softer global scrap conditions reduced the upward pressure seen earlier in the quarter.
Heavy Melting Scrap Prices: Why Did They Rise in Q2?
Looking at all three markets together, several common factors explain the Q2 increase.
First, steel production remained relatively healthy. EAF mills require significant quantities of scrap, so stronger production directly supports scrap consumption.
Second, construction and manufacturing activity improved. More construction and industrial activity usually means more demand for steel products, which encourages mills to maintain production.
Third, scrap supply was temporarily restricted. Seasonal collection conditions reduced the amount of material reaching the market at the same time that buyers were looking for more scrap.
Fourth, export demand added competition. International buying can quickly influence domestic scrap markets because suppliers can compare local and export opportunities.
Finally, higher logistics and processing costs added to the overall price structure.
These factors explain why the HMS Scrap Price Trend remained positive through much of Q2.
Why Did Prices Fall in June?
The June correction was not necessarily a sign of a major market collapse. Instead, it reflected a gradual normalization.
When scrap collection improves, more material becomes available to buyers. If mills also have sufficient inventories, they do not need to purchase large quantities immediately.
At the same time, softer finished steel demand can make steelmakers more careful about production plans. Lower production requirements naturally reduce the need for additional scrap.
This was visible across the Netherlands, USA, and Turkey. All three markets experienced a decline in June after recording strong gains during the quarter.
The June movement therefore suggests that the market was moving toward a healthier balance between supply and demand.
Heavy Melting Scrap Price Forecast
Looking beyond Q2, the direction of the Heavy Melting Scrap market will likely continue to depend on a few major factors.
Steel production will remain one of the most important indicators. If EAF mills maintain strong operating rates, demand for scrap should remain supportive. Stronger construction and manufacturing activity could provide additional support.
Scrap collection will also be important. If collection volumes continue to improve, additional supply could limit further price increases. Conversely, another period of restricted collection could quickly tighten availability.
Export demand is another major factor. Strong international buying can lift prices, particularly in markets that depend on imported scrap. Changes in freight costs can also affect the delivered cost of material.
Therefore, the near-term outlook should be viewed as balanced rather than automatically bullish. The strong Q2 increase created a higher price base, but the June correction showed that buyers are becoming more cautious.
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Heavy Melting Scrap Prices and Market Outlook
The Q2 2026 experience provides an important lesson for anyone following the scrap market: price movements are rarely driven by a single factor.
Demand, supply, steel production, construction, manufacturing, exports, freight, collection rates, and inventories all work together.
The strongest price increases occurred when several of these factors moved in the same direction. In April and May, steelmakers wanted more scrap while available supply was relatively limited. This created upward pressure.
By June, the situation changed. Supply improved while purchasing became more cautious. The result was a decline in prices across the major markets.
For market participants, watching only the current price is therefore not enough. The Heavy Melting Scrap Price Index, price charts, procurement activity, inventory levels, and steel production trends should all be considered together.
The Heavy Melting Scrap Price Trend in Q2 2026 was characterized by a strong rise followed by a moderate correction. Overall quarterly increases reached 6.49% in the Netherlands, 8.46% in the USA, and 7.38% in Turkey.
The April and May rally was supported by resilient steel production, stronger construction and manufacturing activity, limited scrap availability, firm EAF mill procurement, and healthy export demand. Higher logistics and processing costs added further support.
June brought a different market environment. Better scrap collection, sufficient inventories, softer export demand, and more cautious steel mill purchasing reduced price pressure. Prices declined by 3.16% in the Netherlands, 1.03% in the USA, and 1.86% in Turkey during the month.
Overall, Q2 2026 showed a market that started with tight supply and strong demand but gradually moved toward balance. The future direction of HMS Scrap Prices will depend largely on steel production, scrap collection, export demand, inventory levels, and the strength of downstream steel consumption.
For buyers, sellers, recyclers, and steel market observers, the Q2 pattern highlights why tracking Heavy Melting Scrap Prices, the HMS Scrap Price Trend, the Heavy Melting Scrap Price Chart, Price Trends, Forecast, and Index together provides a clearer understanding of where the market may be heading.
About Price-Watch™
Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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