Glencore begins deep-sea ferrous scrap trading from EU to Turkiye

• Commodity houses increasingly reposition scrap as a strategic metallics asset
  
  
• Turkiye emerges as a key battleground for deep-sea scrap control and EAF-linked supply chains
  
  
• Financing strength and logistics integration likely to reshape global scrap trade dynamics
  
  

Miner and trading giant Glencore Plc is currently offering a deep-sea cargo from the European Union for June shipment to Turkiye, according to market participants, signalling what many market participants see as a much larger structural shift unfolding across the global steel and metallics market.

Meanwhile, a Baltic-based scrap supplier source informed BigMint that the company has also entered into an agreement with Lebal Gdansk Port, further strengthening its export logistics and cargo handling capabilities for deep-sea scrap shipments.

Industry participants believe Glencore's involvement could gradually turn the Baltic-Turkiye scrap route into a more regular and structured trade flow rather than occasional spot cargo business.

Glencore is currently offering a deep-sea ferrous scrap cargo from the EU for June shipment to Turkiye through a Baltic-based exporter, the media report said. Although the exporter has supplied only a limited number of deep-sea cargoes into Turkiye over the past few years, market participants noted that financing limitations had previously restricted its ability to scale volumes consistently, the report added.

The exporter reportedly entered the Turkish market in 2023, while most of its earlier business was focused on smaller Mediterranean cargoes to destinations such as Morocco and others for smaller cargoes of 8,000 t ot 10,000 t volume. Turkish shipments, however, involved relatively larger cargoes of around 20,000 t, requiring stronger financing and freight management capabilities.

"Deep-sea scrap trade is highly capital intensive. Cargo aggregation, freight exposure, and payment cycles require strong financial backing, and that is where a company like Glencore can significantly expand the scale of business," a scrap trader based out of the Baltic region told BigMint.

Turkiye's growing importance in low-carbon steelmaking

Turkiye remains the worlds largest importer of ferrous scrap and one of the most electric arc furnace-intensive steel-producing regions globally. The country imports over 18-20 mnt of scrap annually in normal market conditions, with deep-sea cargoes from the US, EU, Baltic region, and UK remaining critical for both flat and long steel production. Turkiye's strategic importance is growing further as global steelmakers accelerate decarbonisation efforts and increasingly shift toward EAF-based steelmaking routes.

"For EAF producers, scrap availability is becoming just as important as iron ore or coking coal for blast furnace mills. Stable access to quality scrap is now directly linked to competitiveness in green steel markets," said a Turkish steel market participant.

Industry sources added that rising EU-CBAM pressure and stricter environmental compliance are forcing steelmakers to increasingly prioritise lower-carbon metallics sourcing. In that environment, scrap is no longer being viewed as merely a recycled by-product, but as a core metallics input for future steelmaking.

Scrap market becoming increasingly institutionalised

Historically, the ferrous scrap trade remained highly fragmented and relationship-driven, dominated by regional recyclers, family-owned exporters, and SME trading firms. However, market participants believe the growing involvement of large commodity houses could gradually professionalise and institutionalise the sector.

Glencore's approach appears similar to the model large trading houses traditionally adopted in coal, copper, and nickel markets -- combining financing, logistics control, cargo origination, and long-term customer relationships.

"Large commodity firms are beginning to treat scrap more like a strategic transition commodity rather than a secondary steel feedstock. Whoever controls future scrap flows could gain influence over low-carbon steel supply chains," a ferrous scrap supplier based out of the EU told BigMint.

Industry participants added that the importance of logistics integration is also rising. Deep-sea scrap trading increasingly requires reliable freight access, inland haulage coordination, cargo inspections, and financing capability -- areas where large trading firms possess clear advantages.

Industry leaders also believe that competition for high-quality scrap could intensify globally over the next few years as more regions expand EAF-linked steelmaking capacity.

Decarbonisation reshaping metallics trade flows

As steelmakers across Europe, Turkiye, India, Southeast Asia, and North America pursue carbon reduction targets, demand for low-emission metallics such as scrap and DRI is expected to rise structurally. At the same time, tightening export regulations, waste-shipment restrictions, and resource-security policies globally may increasingly limit free-flowing scrap availability.

"The market is slowly moving toward a situation where scrap security becomes a strategic issue. Large traders want to secure access early before competition intensifies further," said a Singapore-based metallics trader.

Glencore's entry also comes only months after merger discussions between miner Rio Tinto Plc and Glencore failed to materialise earlier this year. While unrelated directly to scrap, the proposed deal highlighted the growing focus among global mining and commodity firms on securing exposure to future-facing metallics and decarbonisation-linked raw materials.