- Brazil scrap market remains largely stable
- Benelux scrap prices firm on tight supply
Ferrous scrap export markets remained largely range-bound during the week ended 21 August, with US and Brazil prices broadly stable while European markets strengthened on tight availability and higher logistics costs. Cautious mill procurement and subdued Asian demand continued to cap upside, although seasonal supply constraints, freight costs and limited availability of suitable material provided support to supplier offers.
US
US ferrous scrap prices remained largely stable during the week ended 21 August, with market participants closely monitoring scrap collection and supply trends. Healthy obsolete scrap availability and cautious overseas demand kept the market balanced.
US East Coast FOB bulk HMS 80:20 edged down by $2/t w-o-w to around $340/t, while shredded remained at around $360/t FOB. In the domestic market, busheling was unchanged at $458-460/t DAP Midwest and $448-450/t Southeast. Shredded scrap stood at $408-410/t in both regions, down $10/t from July settlements.
Plate and structural scrap was assessed at $400-405/t Midwest and $385-390/t Southeast, while HMS stood at $350-355/t and $358-360/t, respectively.
September obsolete scrap prices could come under pressure if strong collection activity continues. However, sustained lower mill buying prices could eventually reduce scrap inflows as dealers lower procurement bids, potentially tightening supply.
Europe
Benelux export scrap prices remained firm in mid-August, supported by tight scrap availability, logistical constraints and steady Turkish mill demand. Although weak finished-steel sales in Turkiye continued to limit buying appetite, higher logistics costs and constrained supply kept suppliers firm on offers. Subdued Asian demand, meanwhile, continued to limit broader upside.
Turkish steelmakers showed greater interest in deep-sea scrap during the second week of August as some mills moved to replenish inventories and maintain production. Firmer Turkish demand, combined with logistical disruptions, supported Benelux dockside prices. Low water levels across the river network continued to raise collection and transportation costs, while limited raw-material alternatives for Turkish mills provided additional support.
HMS 80:20 dockside prices increased by Euro 6/t w-o-w to Euro 270-275/t ($316-322/t), depending on yard location. Meanwhile, FOB Rotterdam HMS 80:20 bulk remained largely stable at around $340/t, reflecting a balance between tight supply fundamentals and subdued demand across other markets.
Brazil
Brazil’s ferrous scrap market remained largely stable through 21 August, with limited trading activity and little change in underlying fundamentals. Steelmakers continued to push for lower prices, while recyclers largely held their offers after resisting reductions for several months amid weak market conditions.
A market source reported a BRL 100/t decline in clean steel scrap prices following continued buyer pressure. HMS 80:20 remained around BRL 800/t ($154/t) FOT, while turnings stood at BRL 700/t ($135/t) FOT and clean steel scrap for steelmaking at BRL 900/t ($173/t) FOT.
In the export market, HMS 80:20 remained at $285-290/t FOB, while shredded scrap declined by $5/t w-o-w to $300-305/t FOB. Higher freight rates expected through August and September could further pressure export pricing and reduce Brazil’s competitiveness in overseas markets.
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