Ferrous scrap export markets remain mixed amid freight and supply constraints

• Low Rhine water levels raise European freight costs
• Brazil domestic scrap prices hold despite mill cut attempts

Ferrous scrap export markets remained mixed during the week ended 11 September, with US and European markets largely stable while Brazil recorded firmer export prices. Limited scrap availability, higher freight costs, and cautious buying continued to influence market activity across key regions.

US

US ferrous scrap export prices rose by $8/t, with HMS 80:20 increasing to $352/t FOB and shredded scrap to $372/t FOB. Domestic September settlements were largely unchanged, with obsolete scrap prices remaining stable.

Ohio busheling was the exception, rising $10/t to $478-480/t DAP amid tight availability and firm flat-rolled steel prices. Midwest busheling was assessed at $465-466/t, while Southeast prices stood at $446-450/t.

Obsolete scrap remained stable, with Midwest shredded at $408-410/t and HMS at $355-356/t DAP. Stronger steel prices and seasonal stockpiling ahead of winter are expected to support scrap demand in Q4.

Europe

European scrap markets remained mixed in early September, with low Rhine water levels disrupting shipments and raising freight costs. Water levels at Kaub stood at 28-30 cm during the midweek, while Rotterdam-Turkiye Supramax freight rose to $30-32/t.

FOB Rotterdam HMS 80:20 bulk prices increased by $4/t w-o-w to $343/t. Benelux dockside HMS 80:20 prices eased to Euro 271-275/t ($315-319/t) from Euro 275-280/t ($319-325/t) as scrap availability improved after the summer slowdown.

UK exporters raised price ideas amid higher collection and freight costs, with HMS 80:20 at GBP 220-230/t ($297-311/t) DAP. Buying interest from Turkiye and India remained modest, although suppliers expect activity to improve as buyers return.

Brazil

Brazilian domestic ferrous scrap prices remained largely stable in the week ended 8 September, despite steelmakers seeking BRL 50-100/t ($8-20/t) cuts. Recyclers showed limited willingness to accept lower levels, with market response varying by region.

HMS 80:20 was assessed at BRL 800-810/t ($157-159/t) FOT (Free on Truck), clean steel scrap at BRL 900-910/t ($176-178/t) and turnings at BRL 700-710/t ($137-139/t). In Sao Paulo, isolated cuts of BRL 50-60/t ($10-12/t) were reported, while Minas Gerais prices remained stable. Resistance was also seen in the Center-West and South.

Meanwhile, Brazilian export scrap prices rose $5/t w-o-w to $290-295/t FOB for HMS 80:20 and $310-315/t FOB for shredded scrap.