Scrap Prices Rise Slightly in Mid-March Amid Weak Buyer Demand

Scrap 

Global scrap prices saw a modest increase in mid-March, driven by higher offers from sellers, though buyer demand remained weak in most regions.

The cost of HMS 1&2 scrap (80:20) in China reached $340/t CFR by mid-March, marking a weekly increase of $2.5/t, according to Kallanish. However, prices merely returned to early-March levels. Foreign suppliers raised prices, anticipating a seasonal demand boost for rebar with the start of construction activity, but their expectations were unmet. The capacity utilization rate of 49 electric steel plants in China dropped to 50% in the second week of March, down from 66.9% the prior week.

Meanwhile, average daily scrap supplies to 255 Chinese steel mills with converter production rose by 1.4% to 489,400 tons week-over-week. Daily scrap consumption increased by 2.79% to 516,500 tons, but Chinese steel mills largely preferred domestic scrap over more expensive imported alternatives, limiting trade at ports.

Turkey and Europe See Price Increases, but Demand Stays Sluggish

Scrap quotes in Turkish ports rose from $373.5/t on March 6 to $381/t CFR by March 18, an $18.5/t increase since the start of the month. However, traders report no transactions at these new price levels, as buyers remain reluctant to accept the hike. Turkish steel mills are targeting European scrap at below $375/t CFR and American scrap below $380/t CFR, while U.S. suppliers are holding firm above $385/t CFR.

Despite the onset of Turkey’s construction season, rebar demand remains weak, keeping prices steady at $570-595/t EXW.

European scrap prices also climbed, rising from $337/t FOB Rotterdam on March 7 to $355/t by March 21, in line with a €15-20/t increase in domestic scrap prices across Italy, France, Luxembourg, Belgium, Germany, and Eastern Europe. However, Polish steel mills are offering higher scrap purchase prices, creating supply constraints in Eastern Europe. Southern European mills report average scrap stock levels, which have prevented further price increases.

U.S. Scrap Prices Rise but Face Market Uncertainty

In the U.S., scrap prices rose from $342/t FOB East Coast on March 7 to $354.5/t by March 21. However, this trend remains fragile due to weak rebar demand. A surge in supply, supported by favorable weather conditions, is putting downward pressure on scrap prices, particularly in the southern U.S., where oversupply is growing.

Notably, raw material prices have not fully reflected the sharp rise in U.S. finished metal product prices, which has been driven by government intervention rather than increased demand. The introduction of a 25% tariff on metal imports has led to price hikes for rebar and other rolled products. In mid-February, Nucor and Gerdau USA raised rebar prices by $40/t, citing higher raw material costs. However, with demand still weak, further raw material price increases may be difficult to sustain.