Iron Scrap Price Trend and Forecast

Iron Scrap Regional Price Overview

Get the latest insights on price movement and trend analysis of Iron Scrap in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Iron Scrap Price Trend for the First Half of 2024

The global iron scrap market exhibited mixed trends, influenced by varying regional dynamics and fluctuating demand from the steel industry. Throughout the first half of the year, iron scrap prices were particularly volatile due to uncertain steel market prospects, seasonal consumption slowdowns, and the pre-holiday purchasing activities of key consumers like Turkey.
 

Iron Scrap Price Chart

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The Turkish market saw a slight increase in scrap prices early in the month, driven by heightened demand as local steelmakers replenished their stocks before Ramadan. This uptick was also supported by a strengthening euro and a shortage of scrap materials, which made it difficult for suppliers to meet demand. However, as the holiday season approached, market activity slowed, and prices stabilized. Steel producers began questioning the sustainability of higher scrap prices, especially given the downward trends in steel prices and the weakening of the euro.

In Europe, the scrap market showed regional variations. In Germany, prices remained relatively stable due to consistent domestic demand and reduced exports, a trend expected to continue through the summer. In contrast, Italy experienced fluctuations in scrap prices, largely due to the weak steel market. Despite declining demand for raw materials, a shortage of scrap prevented prices from falling significantly, and any increase in demand could potentially lead to price hikes.

In North America, the scrap market saw a slight increase, influenced by improved export demand, particularly from Turkey, even as domestic steelmakers faced lower prices for hot-rolled steel. Despite expectations for a decline in scrap prices during June, export activities helped maintain some price stability.

Meanwhile, in China, scrap prices fell throughout June due to declining demand from steelmakers, who faced seasonal challenges such as unfavorable weather and reduced steel demand. Some steelmakers also found pig iron to be a more cost-effective alternative to scrap, further contributing to the decline in scrap prices. However, high temperatures and rainy weather limited the collection of raw materials, offering some support to prices despite the overall downward trend.

Analyst Insight

According to Procurement Resource, the price of Iron Scrap is expected to continue its downward path as the downstream industries are likely to present only moderate demand for the commodity in the forthcoming months as well.
 

Iron Scrap Price Trend for the Second Half of 2023

Iron Scrap prices were witnessed to fluctuate throughout the second half of 2023. July began with a marginal dip in prices, particularly in the American and European regions, as the supplies started improving after a long time.

In the Asian markets, however, the prices were found to be inclining, particularly in the Indian and Chinese markets, as the demands were rising in both domestic and international markets. Nonetheless, these situations reversed soon as the second half of the third quarter started seeing a dip in prices in the Asian markets. The supply flow increased, and the American markets started weighing high as the suppliers here got cautious with orders and purchased less.

Some stability in the global iron scrap market was achieved in the fourth quarter as the gap between the supply and demand dynamics started to diminish, which brought the pricing fundamentals on more equal terms, and the price graph almost plateaued during this time. Overall, a lukewarm performance was witnessed in H2’23.

Analyst Insight

According to Procurement Resource, Iron Scrap price trends are expected to pick up in the coming months as the manufacturing and recycling industries are likely to boost following the holiday season.
 

Iron Scrap Price Trend for the First Half of 2023

In the first and second quarters of 2023, the price trend of iron scrap oscillated consistently in the North American region. The construction and demolition sectors showcased steady demand that somewhat stabilized the market sentiments of iron scrap. Further, the offers from overseas buyers also helped to keep the demand in the positive zone.

The inflow of iron scrap in the region was not as par to equalize the demand from the downstream sectors. The muted supply provided the iron scrap market with a positive push, especially in the months of March and April. The sales of downstream industries such as automotive and construction improved only slightly during this period. However, during the end months of the second quarter, the market sentiments of the construction and the demolition sector contracted, and even the investors were reluctant to spend, negatively impacting the iron scrap price trend.

Analyst Insight

According to Procurement Resource, the price of Iron Scrap is estimated to fluctuate in the upcoming quarters due to the uncertain market sentiments of the downstream industries.

Procurement Resource provides latest prices of Iron Scrap. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.