Global scrap export prices remain firm on tight regional supply despite cautious demand

• US sentiment remains positive amid rising finished steel prices
  
  
• Brazil's domestic market remains subdued amid tax uncertainty
  
  

Global scrap export markets showed a mixed yet firm trend in the week ending 17 April 2026, shaped by tight supply conditions, cautious buying sentiment, and regional demand shifts. While US and European prices remained supported by limited availability and firm seller expectations, trading activity stayed subdued amid widening pricing gaps. Meanwhile, Brazil continued to face weak domestic demand, though steady export flows helped balance overall market dynamics.

US

US domestic scrap prices edged up w-o-w, with shredded scrap assessed at $394/t FOB East Coast and HMS at $374/t FOB, supported by tight supply and limited availability. Export sentiment remained firm, with US HMS 80:20 to Turkiye heard tradable at $400-405/t CFR, while mills continued to bid near $400/t. A deal was reported at $401/t CFR, with fresh offers expected around $405/t. However, a widening bid-offer gap and cautious Turkish buying kept activity subdued.

Ongoing supply constraints continued to support prices, preventing any downside, while firm seller expectations and limited scrap flows are keeping export levels elevated.

Europe

The European scrap market remained firm with mixed price trends, supported by steady demand from Pakistan and cautious buying from India. UK-origin shredded scrap was heard at $425-430/t CFR, while domestic shredded prices stood at $388-390/t in Northern Europe and $408-410/t DAP in Southern Europe.

Dock levels in Europe were estimated around EUR 295-300/t ($350-354/t), translating to roughly $395/t CFR Turkiye after adding $15/t for dock handling and $30/t for freight.

Recent containerised deals included UK-origin HMS (low impurities) at $380-385/t CFR, with higher impurity cargoes around $365/t CFR Qasim. For India, HMS offers were at $375-380/t CFR and shredded at $385-395/t. However, buying interest remained subdued, with Indian buyers quoting just above $390/t CFR, while suppliers targeted $420/t, keeping a wide bid-offer gap and limiting deal closures.

Notably, a containerised deal was also reported last week at Euro 315/t ($372/t) exw for shredded scrap to India, equivalent to around $405-410/t CFR.

Brazil

The Brazilian ferrous scrap market remained stable but subdued, with weak domestic demand and ongoinguncertainty over exemptions from PIS/COFINS taxes weighing on sentiment. Negotiations were slow, with limited deal activity as margin pressures and regulatory ambiguity kept participants cautious.

Domestic HMS 80:20 was assessed at BRL 845-850/t ($169-170/t) FOT, turnings at BRL 760-770/t ($152-154/t), and clean steel scrap at BRL 925-930/t ($185-186/t). Export prices remained steady, with HMS at $295-300/t FOB and shredded at $310-320/t FOB.

Despite weak domestic conditions, export activity stayed strong, with shipments rising y-o-y to 88,819 t in March 2026 from 59,220 t. India remained the leading buyer at 62,468 t, followed by Bangladesh, supporting export volumes.

Recent trade indications to India were heard at $385/t CFR West Coast, with offers around $390/t. Multiple deals included Brazil-origin HMS at $372/t CFR Mundra (grab loading), while Latin American HMS cargoes were reported at $388/t CFR Mundra for both hand-loaded and grab-loaded.

Outlook

Global scrap export markets are expected to remain firm within a narrow range, supported by tight supply in the US and Europe. Sellers are maintaining firm offers, while cautious buying from Turkiye is limiting deal volumes. In the US, sentiment for May remains positive, driven by strong steel output, rising finished steel prices, and constrained scrap inflows. Elevated pig iron and HBI prices continue to support scrap demand, while higher fuel costs add to overall market pressure.

In Europe, prices are likely to remain volatile amid fluctuating demand from Pakistan and India, with high offer levels restricting trade activity. Brazil's domestic market may stay subdued due to tax uncertainties, although steady export demand from India and Bangladesh is expected to support shipment volumes.