- Seasonal mill maintenance curbs US domestic scrap buying
- Italian domestic scrap prices decline before shutdowns
Ferrous scrap export markets showed mixed trends during the week ended 31 July, with improving export demand and higher freight costs supporting prices in the US and Europe, while Brazil remained largely stable despite weak domestic steel demand. Seasonal maintenance shutdowns, cautious mill procurement, and ample scrap availability continued to influence buying activity across key regions.
US
The US ferrous scrap market remained firm during the week, supported by stronger export demand and resilient domestic steel fundamentals, although sentiment for obsolete grades remained cautious ahead of August settlements. Turkish mills booked several deep-sea cargoes during July, lifting HMS 80:20 prices to $343/t FOB US East Coast, while shredded scrap strengthened to $363/t FOB.
In the domestic market, busheling remained stable at $460-462/t DAP across the Midwest and Southeast. Shredded scrap held at $420-425/t DAP Midwest and $418-420/t DAP Southeast, while HMS was assessed at $365-370/t DAP Midwest and $372-375/t DAP Southeast. Plate and structural scrap also remained unchanged at $405-410/t DAP.
A US-based scrap supplier said stronger flat steel prices continue to underpin prime scrap demand, with hot-rolled coil (HRC) trading at $1,175-1,177/t exw and futures approaching $1,200/t for September. The supplier added that Nucor’s $10/t price increase, along with extended mill order books, has strengthened pricing confidence, while planned mill outages during September-October are expected to keep finished steel supply relatively tight.
Separately, another US-based trader said domestic mills are operating at around 80% capacity utilisation, deliberately avoiding higher output to protect steel prices and margins. However, the trader expects shredded and other obsolete grades to face downward pressure during August as scheduled maintenance outages temporarily reduce domestic scrap demand. Nevertheless, healthy export bookings, particularly from Turkey, are expected to continue supporting overall market sentiment.
While busheling futures point to limited upside for scrap prices through year-end, underlying steel market fundamentals remain supportive. US steel imports fell to 3.3-3.4 million tons in H1 2026, with Canada accounting for a significant share of the decline, tightening domestic supply and supporting mill profitability. Combined with Turkiye’s HMS 80:20 import prices holding at $378-380/t CFR, these factors are expected to keep the US scrap market broadly stable.
Europe
European ferrous scrap markets strengthened during the week ended 31 July, with FOB Rotterdam HMS 80:20 rising $5/t w-o-w to $338/t FOB, supported by firmer export sentiment, higher freight costs, and tightening scrap availability. In contrast, Italy’s domestic scrap market weakened as subdued steel demand and the approaching August maintenance shutdowns reduced mill procurement.
Italy’s July purchasing campaign concluded with scrap prices declining by euro 25-30/t ($29-35/t). E3 (HMS 80:20) scrap traded at euro 300-315/t ($346-363/t) DAP, E8 (Shredded) at euro 320-325/t ($369-374/t) DAP, and E40 around euro 330/t ($380/t) DAP. Market participants said most mills have completed July purchases, and fresh price negotiations are expected to resume in September after the summer shutdowns.
Meanwhile, the UK export scrap market strengthened towards month-end as higher freight costs and tighter scrap availability lifted supplier offers. Demand improved from Turkiye and Pakistan, while Indian buyers remained cautious due to weak steel demand. UK domestic dockside prices remained stable at GBP 200-210/t ($269-282/t) DAP for HMS 80:20 scrap.
Brazil
Brazil’s ferrous scrap market remained stable during the week despite announcements of further price cuts for August, as weak steel demand and ample scrap supply continued to pressure sentiment. However, traders noted that mills were still actively procuring scrap, limiting sharper declines.
Domestic HMS 80:20 remained stable at BRL 800-850/t ($158-168/t) FOT, turnings scrap at BRL 700-750/t ($138-148/t) FOT, and clean steel scrap at BRL 900-950/t ($178-188/t) FOT. Export prices were also unchanged, with HMS 80:20 at $285-290/t FOB and shredded scrap at $310-315/t FOB.
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