Global scrap prices rose by 1–3% in May

Turkey

On the Turkish market, scrap prices rose by 1.4% between April 24 and May 22, reaching $408.5/t CFR. Over the past few weeks, prices have reached their highest level since January 2024.

The Turkish market remained tight in May. Suppliers sought to keep prices at high levels, citing higher scrap collection costs in Europe and logistics expenses, while steelmakers, on the other hand, looked for opportunities to lower their purchase prices. At the beginning of the month, freight rates and a stronger euro provided additional support to prices.

The main restraining factor was weak sales of finished rolled products. Rebar sales remained sluggish, and high borrowing costs weighed on liquidity. As a result, mills often postponed purchasing decisions, although the need for raw materials for June shipments forced them to return to negotiations.

Toward the end of May, the advantage shifted to buyers. The weakening of the euro, cheaper Chinese billets, and a correction in freight rates increased pressure on sellers. Some mills focused more actively on the local market and short-haul routes, where material was cheaper than deep-sea imports.

In the near term, the market is likely to remain under pressure. Activity may pick up after the holidays, but weak demand for rolled steel and ample supply set the stage for further correction.

EU

In the EU, scrap offers for May rose by around 3%; specifically, in Germany (E3) by 3.3% to €310/t ex-works, and in Italy by 3% to €340/t ex-works.

The European market appeared much more confident last month. Steel mills in Western Europe operated at high capacity utilization, which supported stable demand for raw materials. Against this backdrop, scrap collection rates remained limited, particularly in the high-grade segment, pushing prices upward.

The Italian market was particularly active. Local mills were replenishing their stocks and were willing to pay a premium for certain categories of material. Logistics provided an additional boost to the market: repairs to railway infrastructure in the EU, higher transportation costs, and problems with barges in Germany due to low water levels complicated the movement of raw materials between countries.

At the end of the month, activity intensified due to preparations for upcoming restrictions on the Austrian route. This stimulated additional purchases in Italy and supported prices across the region.

In the short term, the European market is expected to remain strong. At the same time, a seasonal slowdown in harvesting and less active exports may somewhat curb growth rates.

United States

In May, the U.S. scrap market remained relatively stable, showing a moderate upward trend. Prices rose by 2.1% to $362.5/t FOB.

The American market was calmer than the European or Turkish markets. The main drivers of prices were high capacity utilization at steel mills and stable demand from electric arc furnaces.

The export situation was less uniform. On the West Coast, some grades became more expensive, while the East Coast market remained virtually unchanged. Due to weaker external demand and less attractive export prices, some traders shifted their focus to the domestic market.

Higher transportation costs served as an additional factor, supporting price levels even as seasonal supply increased.

A predominantly stable-to-negative trend is expected in the coming weeks: domestic demand remains sufficient, but the summer increase in scrap collection may limit the potential for further price increases.

China

The Chinese scrap market showed mixed trends in May: domestic prices rose by 1.8% to $360.2/t, while import prices fell by 6.5% to $360.2/t CFR.

The month began with a correction. Ahead of the holidays, more raw materials entered the market, and mills acted more cautiously. However, after resuming operations, mills stepped up their purchases, and domestic prices quickly returned to growth amid improved margins for steelmakers.

The second half of May revealed another problem—a sharp increase in revenue for enterprises and rising costs for processing tax documents. This complicated settlements between market participants and intensified pressure on processors.

The import segment looked significantly weaker. Foreign offers remained more expensive than domestic prices, so there was little activity from Chinese buyers.

In the short term, the domestic market is expected to remain relatively stable. At the same time, sufficient supply and sluggish imports are unlikely to allow prices to shift toward more rapid growth.

Courtesy : https://gmk.center/en