- Brazil’s scrap market remains subdued amid uncertainty
- Low Rhine levels disrupt European scrap logistics
Ferrous scrap export markets remained largely stable during the week ended 27 August, with weak downstream demand and cautious buying limiting price gains. However, tight scrap availability, elevated freight costs, and firm finished-steel prices provided underlying support across key markets. US and European prices remained broadly range-bound, while Brazil’s market stayed subdued amid economic uncertainty and limited trading activity.
US
The US ferrous scrap export market remained subdued during the week ended August 26, with no new cargo sales reported as Turkiye continued sourcing material from Europe and the Baltic region. Market participants remain divided on whether Turkish mills have secured enough scrap for September.
Ample secondary-grade scrap availability in the US, along with planned maintenance outages at 17 steel mills in September and October, is expected to weigh on domestic demand.
US East Coast export indications were around $340/t FOB for HMS 80:20 and $360/t for shredded scrap. Domestic prices were broadly unchanged, with busheling at $473/t Midwest and $462/t Southeast, while shredded stood around $422/t in both regions.
Midwest HRC prices climbed to a four-year high of $1,329/t, supporting scrap values through firmer mill margins. However, surplus obsolete scrap supply and weak export demand, with Turkish scrap around $375/t CFR, continue to cap upside.
The market is expected to remain broadly stable in September, while tighter supply could emerge in Q4.
Europe
European ferrous scrap markets remained subdued as Turkish mills resisted higher offers ahead of September buying. Benelux suppliers faced continued price pressure, although tight scrap collection and logistical constraints provided some support to domestic values. Benelux dockside HMS 80:20 prices increased by EUR 5/t ($6/t) w-o-w to EUR 275-280/t ($320-326/t) DAP, supported by limited scrap inflows and a stronger euro.
Meanwhile, low Rhine water levels continued to disrupt barge transportation. Although water levels improved slightly, they remained too low for normal vessel operations, forcing some cargoes onto road and rail and raising freight costs. Sustained rainfall will be needed to restore normal river conditions.
FOB Rotterdam HMS 80:20 bulk was assessed at around $339/t, down $1/t w-o-w, while logistics constraints continued to support delivered scrap prices.
Brazil
Ferrous scrap markets remained stable during the week ending 27 August, with weak trading activity and economic uncertainty limiting market momentum. Recyclers expect prices to remain largely unchanged through October, despite concerns over the upcoming presidential election and broader economic conditions.
HMS 80:20 was assessed at BRL 800/t ($155/t) FOT, while turnings stood at BRL 700/t ($136/t) and clean steel scrap at BRL 900/t ($175/t) FOT. Export prices remained stable at around $285/t FOB for HMS 80:20 and $305/t FOB for shredded scrap. Overall, weak business activity is limiting upside, while firm underlying demand is preventing further price declines.
Leave a Reply