Global scrap metal prices have experienced an uptick across most regions since the beginning of May 2025, driven by factors such as limited supply, increased export demand, and stabilization in the steel sector.
Turkey: After a challenging April, Turkey's scrap market rebounded in May. Prices for HMS 1&2 80:20 climbed to $346.8 per tonne CFR, marking a nearly 6% increase from the end of April. This recovery is attributed to constrained supplies from the US and EU, rising dock prices, and a stable euro supporting export sentiment. However, domestic steel demand remains subdued, and rebar prices have not shown significant growth, keeping the market cautious.
European Union: The EU's scrap market faced downward pressure in early May. In Germany, E3 scrap prices fell by 9.6% to €297.5 per tonne, while Italy saw a 3.1% decline to €315 per tonne. Weak demand from European steelmakers and limited exports to Turkey and Asia contributed to this trend. Nonetheless, with Turkish market stabilization and post-holiday resumption of plant activities, there's potential for price recovery in June.
United States: The US scrap market displayed mixed dynamics. On the East Coast, HMS 1/2 (80:20) prices rose by 3.3% to $318 per tonne FOB, supported by increased exports to Turkey. Conversely, the West Coast saw prices decline to $280-285 per tonne CFR Taiwan, influenced by cheap imported steel and weak hot-rolled steel orders. Traders are hopeful that exports to Turkey and Mexico might alleviate the oversupplied market, particularly in Texas.
China: China's scrap market showed moderate growth in early May. Domestic prices increased by 2.5% to $329.9 per tonne, while import prices rose by 1.6% to $325 per tonne CFR. The stabilization in the steel sector and revived demand for finished products spurred scrap purchases. However, uncertainties over new national standards for imported scrap and currency fluctuations have kept some traders cautious.
Overall, while global scrap prices have risen in May, regional disparities persist due to varying domestic demands, supply constraints, and geopolitical factors. Market participants remain vigilant, monitoring these dynamics to navigate the evolving landscape.
Vietnam Steel by Hoa Sen Group
