Global recycled steel export prices remain flat across key international trade routes. Seasonal lulls, high ocean freight costs, and cautious mill procurement continue to temper overall market activity. Seaborne pricing for benchmark heavy melting scrap (HMS 1/2 80:20) into key hubs like Türkiye trades in a narrow channel. This reflects a delicate balance between limited scrap inflows at export docks and subdued downstream steel sales.
Rangebound Trading Dominates Key Scrap Routes
The seaborne ferrous scrap market has seen benchmark prices consolidate tightly. Deep-sea cargoes of HMS 1/2 (80:20) destined for Turkish mills hold near stable levels. Meanwhile, European and North American suppliers maintain firm price floors due to reduced domestic collection. U.S. exporters show little appetite to cut prices. Scrap flows into coastal yards remain limited by low collection rates and steady domestic mill intake.
At the same time, transatlantic shipping routes face ongoing pressure from high Supramax bulk freight rates. These elevated costs continue to squeeze recycler margins. As a result, scrap processors refuse to discount offshore cargoes while logistics expenses remain high.
Downstream Steel Weakness and Regional Shifts
On the buy side, international electric arc furnace (EAF) operators maintain strict purchasing discipline. Steelmakers in Türkiye, the world’s top scrap importer, face narrow operating margins. These tight margins stem from sluggish rebar export demand and soft global construction activity. Consequently, mills prefer hand-to-mouth buying or drawing down existing melt inventories rather than signing large bulk contracts.
Scrap imports across Asian markets remain similarly constrained. Import volumes in South and East Asia have slowed due to currency swings and competitive domestic collection. A steady flow of cheap Chinese steel exports also dampens import appetite. Meanwhile, proposed European scrap export controls and evolving environmental policies force global traders to rethink long-term supply deals.
Market Impact
○ Impacted Metals: Heavy Melting Scrap HMS 1/2 (80:20), Shredded Steel Scrap, #1 Busheling, Plate and Structural Scrap, Ferrous Scrap
○ Direction: Stable
○ Time Horizon: Near-term
○ Affected Industries: Steelmaking, Electric Arc Furnace Mills, Construction, Infrastructure, Automotive Manufacturing, Recycling and Scrap Processing
○ Related Price Reports: Stainless Steel Weekly Price Report
○ Watch Item: Monitor Turkish rebar export order volumes and transatlantic Supramax freight rates to determine whether scrap pricing breaks out of its current tight range.
SuperMetalPrice Commentary:
The sideways trajectory in global recycled steel export prices highlights a balanced yet fragile standoff between supply restrictions and soft industrial demand. Exporters are defended by tight yard collection levels and elevated freight costs, preventing sharp price drops, while steelmakers are severely restricted by weak finished steel margins, preventing price increases.
Looking forward, scrap market participants should keep a close eye on raw material collection rates in North America and Europe as seasonal weather changes approach. Any supply restriction, paired with potential restocking ahead of winter or a uptick in EAF steel production, could quickly shift the leverage back toward scrap exporters.
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