- Buyer resistance puts pressure on US export prices
- Export bid-offer gap widens w-o-w
US scrap markets stayed weather-affected but saw strong February settlements on firm domestic steel demand, while export prices dipped w-o-w as buyers resisted higher offers. In Europe, a stronger euro and high collection costs supported sellers, and Brazil maintained steady scrap and pig iron exports.
US: Buyer resistance caps upside
US deep-sea scrap prices edged lower w-o-w, even as domestic fundamentals remained strong. Tradable levels for US-origin HMS 80:20 were assessed at $375-376/t CFR, with offers heard at $378-380/t CFR. However, buyers resisted higher targets, keeping deal activity limited and pressuring export values.
February domestic settlements jumped about $30/t m-o-m for shredded and prime grades amid harsh winter disruptions on the East Coast, while Midwest HRC hit a one-year high, supporting mill demand. However, a wide bid-offer gap and cautious overseas buying pressured US export prices slightly w-o-w.
FOB assessments (US East Coast, bulk)
- HMS 80:20 at $345/t, down $4/t w-o-w
- Shredded at $365/t, down $4/t w-o-w
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye: $376/t, stable w-o-w
- Vietnam: $355/t, up by $8/t w-o-w
- Bangladesh: $373/t, up by $2/t w-o-w
EU: Stronger euro, high collection costs keep prices firm
European exporters faced headwinds as the euro strengthened to around $1.19 against the US dollar, weighing on competitiveness for dollar-based sales. Meanwhile, collection costs in the Benelux region were around EUR 275/t which continued to support firm FOB levels.
UK-origin shredded was sold at $379/t CFR Qasim, with current offers heard at $380-382/t, while buyers are bidding at $377-378/t for UK/EU material.
EU-origin HMS 80:20 was heard traded at $369-371/t CFR in deep-sea markets, with a Belgium-origin deal at $369/t CFR adjusted higher for premium equivalence, pending confirmation. Elevated freight from Northern Europe and the US continued to support CFR levels.
Brazil: Tight scrap generation, firm pig iron exports
In Brazil, scrap prices edged higher ahead of the Carnival slowdown, supported by tight yard inventories and selective mill restocking. Merchant pig iron prices increased to $430/t FOB for US-bound cargoes, backed by firm demand.
According to BigMint, Jan’26 ferrous scrap exports rose 38% y-o-y to 67,375 t from 55,436 t in Jan’25 , with India as the key destination. Pig iron exports climbed 30% y-o-y to 407,753 t from 313,618 t, supported by strong global appetite and higher freight rates.
Outlook
Scrap markets are expected to remain broadly rangebound in the near term. Tight collection in the US and Europe, firm domestic settlements, and elevated freight costs provide cost-side support. However, cautious overseas buying and resistance to higher offers are likely to limit upside, keeping negotiations selective and deal activity moderate.
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