Global Scrap Prices Remain High Despite Regional Slowdowns

Global Scrap Prices Supported by Limited Supply and Regional Trends

Global scrap prices remain strong as seasonal supply reductions and cautious steel purchases shape market dynamics. In Turkey, HMS 1&2 80:20 scrap rose 1.9% in December, reaching $369.1/t FOB, driven by low supply and high freight costs. Meanwhile, weaker domestic steel demand and imports of billets may moderate further price increases.

In Europe, scrap prices also trended upward, with Germany (E3) reaching €262.5/t ex-works and Italy €305/t delivered. Limited domestic supply and competition for high-quality scrap supported pricing, despite weak steel demand and longer plant shutdowns. Export demand, especially from Turkey and North Africa, further bolstered European prices during November and early December.

In the United States, scrap stabilized at $305/t, with modest gains of 1.7% over the past month. Support came from hot-rolled coil price increases, mill margin maintenance, and restrictions on scrap collection due to early winter conditions. Expectations for a revival in demand and prices are largely focused on January when mills resume full operations.

In contrast, China saw falling scrap prices amid weak mill profitability and seasonal demand declines. Imported scrap dropped 2.9% to $329/t CFR, while domestic offers fell slightly to $330.7/t. Electric arc furnace mills limited purchases due to high electricity costs and maintenance preparations, maintaining downward pressure on prices.

Regional Factors Driving Global Scrap Price Dynamics

Turkey, the US, and Europe show resilience due to constrained supply and strategic restocking ahead of January production. China illustrates how weak demand and high costs can suppress prices even with abundant supply. These trends highlight the complex interplay between supply, steel demand, and seasonal factors in global scrap markets.

SuperMetalPrice Commentary:

Global scrap prices remain high, but regional differences persist. Turkey and Europe benefit from tight supply and export demand, while China faces pressure from weak steel profitability. SuperMetalPrice expects prices to stay elevated until year-end, with January demand recovery offering the next major price signal.