DAILY STEEL SCRAP: Fresh US cargo sends prices down further

Turkish deep-sea scrap import prices went down further at the end of the week on the news of a fresh US booking, market participants told Fastmarkets on Friday May 28.

A steel mill in the Marmara region booked the US cargo, consist of HMS 1&2 (80:20) at $503 per tonne and shredded at $513 per tonne cfr. The cargo breakdown was not immediately clear at the time of publication.

The previous deal from the US was on Wednesday, when a Turkish steelmaker booked 44,000 tonnes of HMS 1&2 (95:5) at $515 per tonne cfr. This equates to about $508 per tonne on HMS 1&2 (80:20) basis.

As a result, the daily scrap indices went down further at the end of the week.

Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was calculated at $500.66 per tonne on Friday May 28, down by $2.98 per tonne.

And the corresponding daily index for steel scrap, HMS 1&2 (80:20 mix), US origin, cfr Turkey, was $505.24 per tonne on May 28, also down by $2.98 per tonne, leaving the premium for US material over European scrap at $4.58 per tonne.

Turkish steel mills booked only two deep-sea cargoes this week.

The main driver of the falling prices was weak steel demand in Turkey’s domestic and export markets.

Falling steel billet prices in China brought a decline in import prices for scrap and Turkey’s billet and finished long steel prices have recently been supported by demand from Asia.

Fastmarkets’ weekly price assessment for steel billet, import, cfr China, was $650-660 per tonne on May 28, down from $700-720 per tonne a week earlier.

What to read next
Renewed US-China trade tensions with Donald Trump’s second presidential term could bolster Southeast Asia’s aluminium scrap industry in 2025, particularly amid still-growing Chinese demand, sources told Fastmarkets by Tuesday, January 14.
European steel and aluminium producers have urged the European Commission to take immediate and effective action to tackle "scrap leakage" so that the European Union can meet its sustainable development aims and secure industrial competitiveness.
Fastmarkets has corrected several ferrous metal weekly averages, which were published incorrectly on December 28.
Fastmarkets’ decision follows a one-month consultation to discontinue its China domestic wire rod price because of small transaction volumes and because it is not a major price benchmark or key reference. The consultation received no feedback. The affected price is:MB-STE-0164 Steel wire rod (mesh quality) domestic, ex-whs Eastern China, yuan/tonneFastmarkets will keep its weekly price […]
This adjustment aims to better align the publication with the operational hours of the Chinese market, ensuring domestic market participants have timely access to the prices. Additionally, because the Chinese lithium assessments reflect activity within the local market, this amendment is intended to provide a more efficient and market-relevant pricing for subscribers. The new specifications […]
Read more about how we expect a modest increase in 2025 levels of global crude steel production over 2024.