Scandinavia

July is the month when many Scandinavians take their holidays and enjoy the long, bright evenings. Many companies implement vacation shutdowns and are either fully or partially closed for two to three weeks.

As is the case elsewhere in Europe, the Scandinavian market continues to be characterised by a structural imbalance between supply and demand. Local steel production is not strong enough to absorb the available volumes of recycled steel and exports therefore play a crucial role in market offtake.

Turkey remains the most important reference point for exports of Europe’s recycled steel and therefore for price formation in Scandinavia. With the country’s recycled steel imports falling almost 7% year on year in 2025, its overseas purchases this year seem to have remained relatively stable as demand for finished steel is still under pressure and steel mills’ margins have continued to be limited. In addition, there has been an increased use of alternative raw materials such as billets, thus dampening demand for recycled steel. In June, buying interest in the Turkish market was at a very low level, resulting in the price of HMS 80/20 falling by approximately 7% during the month.

The freight market continues to play a central role in the recycled steel market. Bulk freight rates are significantly higher than last year and remain highly volatile, putting pressure on trading margins. At present, recycled steel exports from Scandinavia to Asia are not competitive. As an alternative to Turkey, attention is turning instead towards Morocco and Spain.