In the past month, global secondary steel markets have experienced a significant drop in scrap metal prices. According to analysts, prices for the world’s most popular scrap grade, HMS 1/2 (80:20), fell sharply from April 1 to April 24 across various markets, indicating a shift in the industry situation.
This is reported by Business • Media
Main Trends and Reasons for Price Decline
In the European market, the price of HMS 1/2 (80:20) scrap decreased by $45 per ton, reaching $310/ton FOB Rotterdam, driven by reduced purchases from the largest consumer, the ArcelorMittal group. Market participants report that purchase volumes have dropped by 20%, and some Italian steel mills have halted purchases due to low demand and overflowing warehouses. This has allowed producers to refuse new shipments and lower prices by an average of $11/ton.
“The rise in scrap prices in the Turkish market was not sustainable, as we expected. Trade wars have led to a decline in prices for Asian steel exports, making scrap prices in Turkey uncompetitive. Cheaper billets have shifted the balance of scrap demand in the country, and Turkish steelmakers are suspending purchases, contributing to the price drop,” notes Andriy Tarasenko, chief analyst at GMK Center.
Global Changes and Market Impact
In the American market, the price of HMS 1/2 (80:20) scrap fell by $47, to $304/ton FOB on the East Coast, despite high prices for finished steel. This is due to falling iron ore prices, allowing electric arc furnace operators to push for lower prices and purchase billets from external producers at cheaper rates. Scrap prices in China also decreased to $326/ton CFR — down $18 compared to the beginning of the month, driven by reduced purchases from electric arc steel mills due to lower production volumes and a drop in capacity utilization to 50%.
In China, rebar production fell by 2.9% in the first three months of 2025 compared to last year, which also indicates a decrease in scrap purchases for production. In Turkey, scrap prices dropped by $49/ton this month, to $331/ton CFR, resulting from decreased confidence in imported metallurgical raw materials, particularly due to falling iron ore prices and increased imports from Ukraine. According to reports, steel imports to Turkey rose by 52.4% in January-February 2025 compared to last year, with supplies from Ukraine increasing by 64.7%, but prices for imported billets only rose by 36.6%.