The Shredded Scrap Price Trend in Q2 2026 showed a clear upward movement across several important global markets. Prices increased during much of April and May as steel mills became more active in purchasing scrap, construction demand improved, and the availability of good-quality ferrous scrap remained limited. At the same time, higher collection, processing, energy, and logistics costs added pressure to the market. By June, however, the market became more mixed as some regions saw better scrap availability and mills became more careful with their purchasing decisions.
Shredded scrap is an important raw material for steel producers, particularly electric arc furnace (EAF) steelmakers. Because EAF production depends heavily on scrap availability, changes in steel production, construction activity, collection rates, and mill inventories can quickly influence scrap prices. The Q2 2026 market provides a good example of how these factors can work together and create different price movements from one region to another.
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Global Shredded Scrap Price Trends in Q2 2026
The second quarter began with firm buying interest from steel mills. During April and May, many producers focused on rebuilding inventories and securing enough raw material for their production schedules. This created stronger competition for available shredded scrap.
The main issue was not simply demand. Supply was also an important part of the story. Collection volumes were relatively limited, while processing costs remained high. When less scrap reaches the market at a time when mills want to buy more, suppliers naturally gain stronger bargaining power.
The Shredded Scrap Price Chart for Q2 2026 would therefore show a general upward direction through April and May, followed by more varied movement in June. The first part of the quarter reflected strong purchasing and tighter supply, while the final month showed signs of market balancing.
Higher energy and transportation costs also affected the final price paid for processed scrap. Shredded scrap requires collection, sorting, processing, and transportation before it reaches a steel mill. When these costs rise, sellers generally need higher prices to maintain their margins.
Why Did Shredded Scrap Prices Rise?
Several factors supported higher Shredded Scrap Prices during Q2 2026.
First, steel mill procurement activity became stronger. Producers needed sufficient scrap for their EAF operations, particularly when steel production schedules improved.
Second, construction demand showed signs of improvement. Stronger construction activity can support steel consumption, which in turn encourages steel mills to maintain or increase production.
Third, the availability of quality scrap was relatively tight. Not all collected scrap is suitable for every steelmaking requirement. Premium-quality shredded material can attract stronger competition when supply is limited.
Finally, higher processing and logistics costs added another layer of price pressure. These costs are important because shredded scrap is a processed material rather than simply collected metal.
Together, these conditions created a supportive pricing environment across several markets.
Italy Shredded Scrap Price Trend
Italy recorded a 9.3% increase in the Shredded Scrap Price Trend during Q2 2026. The increase was mainly connected with tighter domestic scrap availability, stronger steel mill procurement, and firm demand from EAF producers.
April and May were particularly supportive months. Steelmakers increased their purchasing activity and looked to secure additional volumes. This created more competition for premium-grade shredded scrap.
Limited collection volumes also played an important role. When fewer suitable scrap volumes are available, suppliers have greater influence during price negotiations. Higher energy and logistics expenses further increased the cost of processing and delivering material.
By June, however, the pace of growth became more moderate. Mill inventories had improved, and buyers became more cautious. Even so, Italy's Shredded Scrap Prices increased by 2.13% in June. Stable steel demand and continued limitations in supply provided enough support for prices to remain firm.
USA Shredded Scrap Price Trend
The USA recorded a 7.43% increase in the Shredded Scrap Price Trend during Q2 2026. Strong domestic steel production and active procurement from EAF mills helped support the market.
During April and May, steel mills worked to rebuild inventories and secure additional scrap. This increased competition for available shredded scrap, especially higher-quality material.
Construction and manufacturing activity also provided support to steel demand. When steel demand remains healthy, mills generally have a stronger reason to maintain production and purchase raw materials.
However, the US market changed direction in June. Improved scrap flows and more cautious mill buying reduced the pressure seen earlier in the quarter. Shredded Scrap Prices declined by 3.51% in June as spot demand became softer and scrap availability improved.
This June decline is an important reminder that a strong quarterly increase does not necessarily mean prices will continue rising every month. Market participants can quickly change their purchasing strategies when inventories improve.
Germany Shredded Scrap Price Trend
Germany recorded a 7.68% increase in the Shredded Scrap Price Trend during Q2 2026. Stronger purchasing by steel mills, limited scrap collection, and improving demand from EAF producers supported prices.
April and May again proved to be the strongest part of the quarter. Steelmakers increased restocking activity while downstream steel demand improved. At the same time, the availability of high-quality shredded scrap remained constrained.
Energy, labour, and processing expenses also remained important considerations for suppliers. These costs made it difficult for sellers to reduce prices even when buyers became more cautious.
In June, Germany saw a small correction. Shredded Scrap Prices declined by 0.42%. Better mill inventories, balanced supply conditions, and slower spot-market activity reduced the urgency to purchase additional material.
Despite the small decline, prices remained at relatively elevated levels, showing that the underlying market was still supported by firm supply and demand fundamentals.
Spain Shredded Scrap Price Trend
Spain recorded the strongest quarterly increase among the four markets discussed, with the Shredded Scrap Price Trend rising by 10.79% in Q2 2026.
The increase was supported by stronger domestic steelmaking activity, tightening scrap availability, and higher purchasing requirements from EAF producers. Limited collection volumes and rising processing, energy, and logistics expenses also contributed to the firm market.
During April and May, stronger steel demand encouraged mills to restock. Competition for available shredded scrap increased, while reduced availability of export-quality material added further support.
In June, the market continued to move higher, although at a slower pace. Spanish Shredded Scrap Prices increased by 1.01%. Steady steel production requirements and relatively tight supply continued to support prices, while improved inventory levels and more careful purchasing prevented a sharper increase.
What the Shredded Scrap Price Index Shows
The Shredded Scrap Price Index for Q2 2026 reflects an interesting transition in market conditions. At the beginning and middle of the quarter, the balance was clearly tilted toward stronger prices because mills wanted more material while supply remained constrained.
By June, the balance became more stable. Some markets continued to experience supply-related price support, while others began to see stabilization or small corrections.
This difference between regions is important. Scrap is a local and regional market in many ways. Collection rates, transportation costs, steel production levels, mill inventories, and local demand can all affect prices differently.
Shredded Scrap Price Chart: Q2 Market Movement
Looking at the Shredded Scrap Price Chart for Q2 2026, the overall pattern can be described in three stages.
April: Buying activity strengthened and prices moved upward as steel mills increased procurement.
May: The upward momentum continued. Tight supply, stronger steel demand, and competition for quality scrap kept prices firm.
June: The market became more balanced. Some regions recorded further increases, while others experienced stabilization or declines as inventories improved and mills adopted more cautious purchasing strategies.
This pattern shows why a price chart is useful. A quarterly percentage change tells us what happened over the whole period, but a monthly chart helps explain how the market actually moved.
Shredded Scrap Price Forecast: What Could Happen Next?
Based on the Q2 2026 market conditions, the near-term outlook for shredded scrap appears balanced rather than uniformly bullish.
Continued EAF production would provide an important source of demand. If steel production remains healthy and construction activity continues to improve, mills may continue to require significant scrap volumes.
On the supply side, collection rates will remain important. If scrap availability stays limited, prices could receive additional support. However, improved collection and inventory levels could reduce purchasing pressure.
Energy, processing, and transportation costs will also remain important. If these expenses stay high, sellers may continue to maintain firm price expectations.
Therefore, the likely direction will depend on the balance between steel mill demand and scrap availability. Markets with tighter supply could continue seeing price increases, while regions with comfortable inventories may experience more stable prices.
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Key Takeaways from Q2 2026
The Q2 2026 Shredded Scrap Price Trend highlights several important market lessons:
- Global prices generally moved higher during the quarter.
- April and May were supported by stronger mill procurement.
- EAF steel production remained a major source of scrap demand.
- Limited collection volumes restricted supply.
- Higher processing, energy, and logistics costs supported seller price expectations.
- Italy recorded a quarterly increase of 9.3%.
- The USA recorded a quarterly increase of 7.43%.
- Germany recorded a quarterly increase of 7.68%.
- Spain recorded the highest quarterly increase at 10.79%.
- June showed more mixed regional movement as inventories improved and buyers became more cautious.
- The US market recorded a 3.51% decline in June, while Germany declined by 0.42%.
- Italy and Spain continued to record June increases of 2.13% and 1.01%, respectively.
The Q2 2026 Shredded Scrap Price Trend was mainly characterized by stronger prices, tighter availability, and increased steel mill purchasing. April and May were particularly firm as EAF producers increased procurement and worked to maintain sufficient scrap inventories.
By June, however, the market started moving toward a more balanced position. Better inventory coverage, improved supply in some regions, and cautious purchasing reduced the upward pressure. Still, the market remained supported by steady steel production demand and the continued importance of shredded scrap as an EAF raw material.
The Shredded Scrap Price Chart and Shredded Scrap Price Index together show that the market did not move in exactly the same direction everywhere. Spain and Italy continued to see price increases in June, while the USA and Germany experienced corrections.
Going forward, steel production, construction demand, scrap collection, mill inventories, and processing costs will remain the main factors to watch. For buyers, sellers, and market observers, understanding these fundamentals is more useful than looking at price movement alone. The Q2 2026 experience shows that Shredded Scrap Prices can respond quickly when demand strengthens or supply becomes tighter, but they can also stabilize when mills rebuild inventories and become more selective in their purchasing.
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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