- Strong Turkish demand limits downside risks for US scrap
- Volatile container freights slow European trading activity
Global ferrous scrap export markets showed mixed trends across key regions on 3 April, with bulk scrap prices in both the US and Europe increasing w-o-w, while Brazil and Mexico remained largely stable. Firm costs of steelmaking raw materials, such as pig iron, and export demand supported high grades, but ample scrap availability, freight volatility, and cautious buying sentiment continued to weigh on the overall market direction.
US
US scrap market sentiment remained firm, tracking higher export prices. HMS 80:20 increased by $4/tonne (t) w-o-w to $372/t FOB and shredded to $392/t FOB.
US ferrous scrap sentiment remained mixed, with high grades better supported than obsolete scrap. Busheling held at $445-447/t Midwest and $450-455/t Southeast, while shredded stayed at $450/t and HMS at $400-405/t delivered.
High grades continued to find support from rising prices of other metallics and steel, with pig iron imports increasing to $500/t CIF New Orleans (up $30/t m-o-m) and Midwest HRC climbing to $1,030/t.
Meanwhile, obsolete grades faced pressure from ample supply due to improved scrap generation. However, strong import demand from Turkiye, where HMS 80:20 rose to $402/t CFR, helped limit downside risks.
Europe
The European scrap market remained firm, with shredded scrap prices at $420-425/t, rising by around $5-8/t w-o-w, supported by steady export demand and limited availability of material. Recent deals included UK-origin shredded at $415/t (2,000 t) and $425/t for a 1,500 t cargo, while fresh offers were heard at $420-422/t against buyer bids at $414-417/t.
For India, Europe-origin HMS 80:20 was offered at $370-375/t CFR, with shredded around $390/t. Freight rates surged to about $1,450-1,500/20ft, increasing by up to $200/20ft, which added upward pressure on prices by raising overall import costs.
Market participants highlighted continued volatility due to unstable container freight, with limited deal visibility and cautious buying sentiment.
Brazil
Ferrous scrap prices held largely steady in the week to 3 April despite pressure from mills that reduced purchasing prices by BRL 80-100/t ($15-19/t) amid lingering uncertainty over the PIS/Cofins tax exemption. The uncertainty over whether certain scrap transactions would retain tax benefits kept buyers and sellers cautious, resulting in fragmented market activity and mixed pricing approaches among steelmakers.
Export prices edged higher by $8-10/t w-o-w, with HMS at $298-300/t ($57-58/t) FOB and shredded at $312-315/t FOB. Despite the overall bearish sentiment, sources noted tightening supply, particularly for clean scrap, with sellers seeking price increases of around BRL 50/t ($10/t).
Mexico
Ferrous scrap prices in Mexico remained stable in the week ended 3 April, as market activity slowed ahead of the Holy Week holidays. Mills kept prices unchanged to ensure steady scrap inflows, despite prevailing bearish sentiment.
Busheling was assessed at MXN 7,700/t ($431/t) FOT Northeast, while HMS 90:10 stood at MXN 7,000/t ($392/t), both unchanged w-o-w after an MXN 100/t ($6/t) decline in the previous week. Market indications placed busheling at MXN 7,900-8,100/t ($442-454/t) and HMS 90:10 at MXN 7,300-7,500/t ($409-420/t).
Trade activity remained limited, with participants expecting a downward trend, though no immediate catalyst was seen due to holiday-led inactivity.
Outlook
Global scrap export markets are expected to remain mixed. In the US, shredded and cut grades may decline amid ample supply, while high grades could stay stable on firm fundamentals. Europe may remain volatile due to freight fluctuations and cautious buying, while Brazil faces downside risks from domestic price cuts. Mexico is likely to see muted activity with slight downward pressure post-holidays.
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