- Domestic mills settle July deliveries at June levels
- August outlook firm amid rising EAF mill capacity
US ferrous scrap export prices declined by $3/tonne (t) w-o-w. The drop came as Turkiye, a major importer, remained largely inactive due to a national holiday, while some US domestic mills settled July deliveries at June levels.
A trader noted the potential for scrap price increases in August, as more electric arc furnace (EAF) capacity comes online and production picks up. While summer supply has remained steady, demand is rising due to expansions from companies such as Big River Steel and new capacity in Arkansas and Alabama.
FOB assessments (US East Coast, bulk)
- HMS 80:20 – $317/t, down by $3/t w-o-w.
- Shredded – $337/t, down by $3/t w-o-w.
Updates on key importers
Turkiye: Demand for US-origin scrap in Turkiye remained limited, with only a few deals heard, as deep-sea prices held at around $347/t CFR and mills showed caution amid weak steel demand.
Factors weighing on Turkish buying interest
- The national holiday in Turkiye during mid-July slowed market activity.
- Weak rebar sales made mills reluctant to pay above $345/t CFR.
- Higher US offers at $352-353/t CFR faced resistance amid cheaper European alternatives.
Turkish buyers were mostly inactive, with one trade source indicating interest for 5-6 vessels for August shipment. Meanwhile, European-origin cargoes were offered more competitively at $337-340/t CFR, further tempering interest in US material.
Bangladesh: Demand for US-origin scrap in Bangladesh remained limited this week, with mills remaining cautious. The ongoing monsoon rains and weak construction activity continued to weigh on rebar sales, prompting buyers to delay large-volume purchases.
In Dhaka, rebar offers varied between BDT 78,000-81,000/t ($646-670/t). Australian HMS at $354-355/t and Southeast Asian PNS/busheling at $380-385/t attracted limited interest as bids stayed lower. US-origin material remained competitively priced in comparison, but there was a lack of strong buying momentum.
Vietnam: Demand for US-origin scrap remained soft amid weak finished steel fundamentals and seasonal disruptions, while a recent tariff agreement with the US reduced duties on Vietnamese exports to 20%.
Japanese scrap price cuts and a quiet Turkish market added to the bearish tone. Buyers were hesitant to book amid construction slowdown and broader regional uncertainty.
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye – stable w-o-w at $347/t.
- Vietnam – up by $2/t w-o-w to $338/t.
- Bangladesh – up by $2/t w-o-w to $351/t.
Outlook
US scrap prices may see upward pressure in August, supported by rising mill consumption and new EAF capacity. However, global buying interest remains subdued, with major importers cautious amid weak steel demand and regional economic pressures.
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