- US prices stable as strong steel demand offsets mill maintenance impact
- Rebar price gains improve Turkish mills’ appetite for European scrap
Ferrous scrap export markets remained mixed during the week ended 18 September, with US domestic prices broadly stable, while European export prices strengthened on tighter availability and higher freight and collection costs. Brazil remained stable as lower-price buying attempts lost momentum amid reduced scrap inflows and firmer supplier resistance.
US
US ferrous scrap prices remained broadly stable in the September trading round, with mills maintaining purchase prices amid strong order books and a wide gap between finished steel prices and raw-material costs. Midwest shredded scrap was reported at around $420-425/t DAP, broadly unchanged from the previous round, while busheling increased by $10/t m-o-m to $465-470/t DAP.
Planned maintenance at some Turkish steel mills has not significantly weighed on scrap prices, as firm finished-steel demand continues to support mill purchasing. Stronger export markets have also supported domestic collectors, while US-origin HMS 80:20 recently traded at $398-400/t CFR Turkiye, up $22-24/t since mid-August. The US FOB East Coast assessment stood at $361/t, up $9/t w-o-w. Suppliers remain bullish, although further gains are expected to be more moderate.
Europe
European export scrap prices strengthened during the second working week of September, supported by limited scrap availability, higher collection and freight costs, and improving demand from key outlets. Benelux dockside HMS 80:20 increased to around Euro 280/t ($325/t) DAP from Euro 271-275/t ($314-319/t) a week earlier.
Improved Turkish finished-steel sales and higher long-steel prices further supported exporter sentiment. Turkish rebar prices increased by around $20/t during the week, improving mill margins and allowing producers to absorb higher scrap costs. Sales to Egypt were also heard, although unconfirmed, providing European suppliers with an alternative outlet. BigMint’s weekly assessment for Rotterdam HMS 80:20 increased by $11/t w-o-w to $354/t FOB.
Brazil
Brazilian ferrous scrap prices remained stable in the week ended 18 September, as attempts by some buyers to lower purchase prices lost momentum amid tighter scrap availability. Recyclers reported that earlier price cuts had resulted in reduced scrap inflows, increasing the likelihood of buyers reversing those reductions. HMS remained at around BRL 800/t FOT ($156/t), while clean steel scrap and turnings were assessed at BRL 900/t ($175/t) and BRL 700/t FOT ($136/t), respectively.
Amid tight margins across the supply chain, suppliers showed resistance to further price reductions. Brazilian export prices also remained stable, with HMS at $290/t FOB and shredded scrap at $310/t FOB. Firmer downstream demand in India provided additional support to the global scrap market, with tighter domestic scrap availability and higher sponge iron prices improving the competitiveness of imported scrap.
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