The global recycling market experienced a sharp tightening of scrap copper prices in February 2026, with an increase in scrap copper prices across Europe, Asia, and North America. This increase in scrap copper prices was attributed to a reduction in scrap copper supply and increased industrial demand. The recycling market participants across the recycling chain reported a reduction in scrap copper supply, a reduction in scrap copper sales, and increased competition from scrap copper buyers, especially for high-grade scrap copper.
Price Trends and Market Performance
The scrap copper prices demonstrated a strong positive trend in February 2026, mainly driven by the movement in refined copper prices on the London Metal Exchange (LME). Although LME copper prices fluctuated, they were still high compared to prices in late 2025, thus influencing the increase in scrap copper prices. Market analysis reports from recycling market analysts showed that recyclers increased their scrap copper prices due to increased benchmark prices and reduced physical availability, with discounts on scrap copper prices narrowing.
In some European countries, the prices of copper scrap were relatively stable to firm, despite the fluctuations in the refined copper markets. It was noted that even small increases in the prices of refined copper led to immediate rises in the offers for scrap prices, as the primary and secondary copper markets are closely linked.
Supply Constraints Across the Recycling Chain
One of the main factors that contributed to the increase in scrap copper prices in February 2026 was supply constraints. It was reported in the recycling industry that there were lower scrap supplies in the collection points and recycling facilities, partly due to seasonal factors and the reluctance of scrap suppliers to sell their material at lower prices.
In addition, the disruption of the global supply chain in the main copper industry has further increased the dependence on recycled copper. The challenges in the mining process, the increasing environmental regulations, and the inefficiencies in the supply chain have limited the growth of refined copper supply. Consequently, the industry players have increasingly turned to recycled copper to ensure a stable supply of feedstock, hence increasing the demand for recycled copper.
Demand Dynamics Driving Price Increases
The industrial demand for copper has remained strong in the early part of 2026, and this has continued to drive the rising trend in the price of recycled copper. The main industrial sectors, including construction, power, electronics, and transportation, have continued to maintain a stable demand for copper. The continued development of electrification projects, renewable energy projects, and electric vehicles has further strengthened the copper demand fundamentals.
In the Asian market, the continuous purchasing of wire and cable manufacturers and electrical component makers drove up the demand for scrap copper, while in the European market, fabricators have maintained active purchasing despite increased input costs. The reduction in scrap supply against the backdrop of stable downstream demand has resulted in a supply-demand mismatch, which is supportive of price rises throughout February.
Policy and Structural Market Trends
Another factor that is affecting recycling markets is the policy trend surrounding circular economy strategies and resource security. Governments in different regions are enhancing recycling targets and reviewing scrap export policies to guarantee regional access to key raw materials. These policy trends may dampen international scrap trade and trigger regional competition for accessible recycled copper, further tightening market fundamentals.
Moreover, the rising focus on sustainable procurement has elevated the importance of recycled copper, which consumes less energy compared with primary copper production and is consistent with decarbonization strategies. This structural shift is anticipated to drive the long-term recycling demand and underpin market stability for premium scrap materials.
Outlook for the Remainder of 2026
Market trends indicate that the scrap copper market will continue to face tightness in the short term, with prices set to remain strong as long as the supply chain remains constrained and the stability of industrial demand is maintained. Although market fluctuations may arise in the short term because of macroeconomic factors and changes in refined copper prices, the medium-term forecast indicates that the secondary copper market will continue to perform strongly in the rest of 2026. The energy transition and the adoption of circular economies will continue to drive the demand for recycled copper.
Sources
Copper scrap prices respond to LME decline
Copper scrap prices ease slightly in Germany amid volatile market
Tightening supply in the global scrap market has pushed higher prices
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BASUNDE, Rohini（Global PR & Reporter ）
Based in India, Rohini works as a Reporter and Global PR professional,
leveraging her strong background in culture, society, and media studies.
Her work primarily involves article writing and managing global public relations campaigns.
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