- US, European demand face a drop in recycled steel demand
- India and Turkiye show strong scrap usage growth
BIR’s October 2025 report highlights a mixed global recycled steel market: the US, Europe, China, Japan, and South Korea witnessed declining demand in H1CY’25, while India and Turkiye recorded strong growth, with trade flows and prices affected by tariffs, duties, and market imbalances.
Global scrap trade flows in H1CY’25
In H1CY’25, Turkiye remained the top buyer of overseas recycled steel at 9.404 million tonnes (mnt) (-5.8% y-o-y), while India held second place with 4.580 mnt (+18%). EU-27 continued as the leading exporter at 8.304 mnt (-2.8%).
Recycled steel consumption in H1CY’25
China, EU-27, the US, Japan, and South Korea all witnessed declines in recycled steel consumption, while India (+15.3% to 19.65 mnt) and Turkiye (+2.2% to 16.05 mnt) recorded gains.
China: Crude steel output fell 3% y-o-y to 514.8 mnt, while recycled steel consumption dropped 11.4% to 109.01 mnt.
India: Recycled steel usage surged 15.3%, outpacing the 9.2% growth in crude steel production.
Turkiye: Recycled steel consumption was up 2.2% despite a 1.7% decline in crude steel production.
Region-wise market updates (Q3CY’25)
US: The US recycled steel market saw a rare period of calm over the summer, with deals closing quickly amid balanced supply and demand and steady mill order books. However, the mood shifted in recent weeks, as a slowing economy and cautious buyers weighed on new steel sales. Hot-rolled coil (HRC) prices that hovered near $900/t fell below $800/t by September, prompting cuts on key busheling grades. This softer sentiment has carried into October, as mills look to regain margins at the expense of recycled steel supply.
Europe: In Europe, weak construction activity in Germany kept mill capacity utilisation low, reducing demand for recycled steel and pushing prices down after a brief period of stability in August. Scandinavia also faced falling prices and lower volumes, while the UK experienced continued pressure on shredder operations.
Asia
In Asia, seaborne recycled steel faced pressure from high Chinese exports, up 10% y-o-y to 77.49 mnt in the first eight months of 2025. While China plans to cut inefficient capacity, progress has been uneven. South Korea struggled with US tariffs and weak domestic demand, prompting a $290 million export guarantee.
India‘s steel imports have slowed due to safeguard duties and measures supporting domestic production, while Bangladesh maintained steady demand for imported recycled steel, with many recent tenders sourced from Japan. Japan’s domestic market remained largely stalled, as lower construction and demolition activity has kept scrap generation flat.
In the Middle East, Saudi Arabia’s recycled steel market remained firm thanks to tight supply and consistent mill demand. The UAE continued to restrict exports through its AED 400/t export duty, ensuring domestic supply takes priority.
South Africa
Market distortions persisted due to the price preference system and export duties. While mini-mills benefitted, collectors, recyclers, and downstream industries felt the strain.
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