Ferrous scrap export markets remain under pressure amid weak Turkish demand

• US domestic prices remain firm on healthy steel demand, export offers drop
  
  
• Subdued Turkish, South Asian demand weighs on European export prices
  
  

Global ferrous scrap markets remained mixed in the week ended 26 June. The US domestic market stayed firm on healthy steel demand and stable July settlement expectations, while weaker Turkish buying pressured export prices. Meanwhile, softer demand from Turkiye and Asia weighed on European export sentiment, with Brazil's export market also remaining subdued.

United States

US domestic ferrous scrap sentiment remained firm during the week ended 26 June, supported by healthy domestic steel demand and expectations of a stable July scrap settlement despite weaker export activity. Shredder feed prices were largely unchanged.

In the export market, sentiment softened as HMS 80:20 declined to $353/t FOB and shredded scrap fell to $373/t FOB, following a US cargo sale to Turkiye at $388/t CFR. While strong domestic demand and higher finished steel prices continued to support the local market, weaker overseas demand and lower Turkish import prices limited export momentum.

Europe

European ferrous scrap markets remained under downward pressure during the third week of June, as subdued buying interest from Turkiye and weak demand across Asian markets continued to weigh on export sentiment. Italian shredded scrap (E8) was assessed at Euro 360-365/t ($410-415/t) FOB, HMS 80:20 (E3) at Euro 325-340/t ($370-387/t) FOB, and HMS 90:10 (E2) at Euro 355/t ($404/t) FOB.

In the Benelux market, dockside HMS 80:20 purchase prices declined to around Euro 280/t ($319/) DAP, down from Euro 285-290/t ($324-330/t) a week earlier. Export prices also softened, with HMS 80:20 assessed at $350/t FOB Rotterdam and $383/t CFR Turkiye, down $9/t w-o-w. Limited buying from India and Pakistan further weighed on trading activity.

Brazil

Brazil's ferrous scrap market remained stable during the week ended 26 June, with the recent upward price momentum fading and trading activity staying balanced. Domestic prices were unchanged, with HMS 80:20 at BRL 920-930/t ($177-179/t) FOT, turnings at BRL 820-830/t ($158-160/t) FOT, and clean steel scrap at BRL 1,000-1,010/t ($193-195/t) FOT.

In the export market, HMS 80:20 remained at $305-310/t FOB, while shredded scrap held at $325-330/t FOB. However, weaker global prices and sluggish overseas demand continued to pressure export sentiment, with no transactions reported at lower offer levels.