Is Turkiye emerging as an outlet for containerised scrap amid Asian slowdown ?

• UK-origin container shipments reach mills, testing alternate procurement model
  
  
• Mills seek flexibility as margins compress and bulk tags become challenging
  
  

Turkiye, the world's largest deep-sea bulk scrap importer, has recently tested containerised scrap procurement, marking a notable shift in global trade flows traditionally dominated by bulk cargoes.

A Switzerland-based trading house executed the initial shipments of UK-origin HMS 80:20 scrap to Iskenderun, with cargoes sourced from Manchester- and Norfolk-based recyclers. These shipments, carried out around 3-4 weeks ago, have already reached Turkish mills, marking the first real validation of this alternate supply route.

The idea behind the move

A trader involved in the deal said the initiative was aimed at establishing a presence in the Turkish market, particularly at a time when price gaps between regions have widened. "Turkish mills have recently booked HMS at $390/t and above, while Indian buyers are still around $365/t or lower. This created an opportunity to redirect volumes," he noted.

He added that smaller UK yards--primarily focused on containerised exports--have limited options when South Asian demand weakens. "These yards are not part of the Turkish bulk supply chain. When Asia is not buying, material tends to move through alternative routes like this."

The move remains unusual, as Turkiye still depends heavily on bulk imports, which made up nearly 85% of its total scrap inflows in 2025 (15.6 mnt out of 18.7 mnt), mainly from the US and Europe. In contrast, containerised scrap has traditionally been directed toward South Asian markets.

At the same time, bulk buying has shown some slowdown. BigMint's vessel-lineup data shows that scrap bookings in January-February 2026 were around 2.5 mnt, about 0.5 mnt lower than the 2.9-3 mnt seen in the same period last year, indicating softer bulk procurement by mills.

Initial market resistance

Initial resistance was reported from Turkish mills due to handling costs and operational complexities associated with containerised scrap. However, after pricing adjustments and operational alignment, at least three mills proceeded with trial shipments of around 2,500-3,000 t. These cargoes have since been delivered, with feedback indicating satisfactory quality and manageable handling.

Notably, mills in the Iskenderun region of southern Turkiye were among the early participants, showing that mid-sized and logistically flexible players are more open to this model.

Why containers now?

The timing of this shift is closely linked to weak finished steel demand in Turkiye and tightening mill margins. Some small scrap Turkish mills have been reluctant to commit to large bulk cargoes at elevated price levels, particularly as rebar export demand remains subdued, and domestic consumption has yet to recover meaningfully.

Containerised shipments, typically in the range of 2,000-3,000 t, offer mills the flexibility to procure smaller volumes and specific grades without locking in large capital.

Market participants said these cargoes were offered at $5-10/t below bulk prices at the moment. However, prices were largely similar to bulk levels when the deals were booked about a month ago, keeping them viable--especially at a time when smaller mills are hesitant to commit to large volumes.

A supplier involved in the trade noted that this model allows mills to "fine-tune their raw material mix and manage working capital more efficiently," particularly in a volatile pricing environment.

Broader metallics shift in 2025

Pig iron imports rose 55% y-o-y to 2.25-2.3 mnt in 2025, while billet imports increased 7% to 8.4 mnt. In contrast, scrap imports fell 7% to 18.7 mnt. In the early quarter of 2026, HBI inflows have also picked up, pointing to a gradual shift in raw material mix.

This reflects mills' growing need to stay flexible on inputs, with containerised scrap emerging as a short-term option alongside other metallics.Can this disrupt bulk trade?

Despite the successful trial shipments, most market participants believe containerised scrap is unlikely to replace bulk trade in Turkiye, as bulk cargoes remain more cost-effective and suitable for large mills.

However, containers offer flexibility, especially for smaller or inland mills and for sourcing limited volumes. This comes at a time when global scrap supply is tightening. South Asia, particularly Pakistan, has lost around 1-1.1 mnt/year of UAE scrap flows, while India is also seeing reduced Gulf supply. At the same time, strong domestic demand in exporting regions like the US and Europe is limiting availability.

A Baltic supplier commented, "I don't see this becoming a long-term trend. It may work as a temporary outlet for yards supplying Asia that are currently facing weak demand. Turkish mills are unlikely to focus heavily on containers, except perhaps smaller mills that cannot rely on deep-sea bulk cargoes."

Strategic outlook

In the near term, containerised scrap shipments to Turkiye are expected to continue on a limited scale, particularly if Asian demand remains subdued and pricing remains competitive against bulk cargoes. Additional shipments from the UK are likely, especially from smaller yards seeking alternative outlets.

However, the model will remain highly price-sensitive. If the cost advantage over bulk narrows or operational complexities outweigh benefits, mills are likely to revert to traditional procurement. Over the longer term, while container trade is unlikely to disrupt bulk dominance, it could evolve into a niche but strategic channel--particularly for top-up volumes, grade-specific needs, and supply diversification in an increasingly constrained global scrap market.