Steel Scrap Price Trend and Forecast

Steel Scrap Regional Price Overview

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

Steel Scrap Price Trend for the Q4 of 2024

In the last quarter of 2024, the steel scrap price curve in the Asian region experienced overall downward pressure. While the price movements mirrored the trends of global steel markets, factors such as challenges in scrap collection and regional macroeconomic conditions impacted the market. Early in the quarter, steel scrap prices showed an upward trend, driven by optimism around Federal Bank rate cuts. However, this price increase was short-lived, and prices began to decline by mid-October.
 

Steel Scrap Price Chart

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Moreover, the collection of steel scrap was hindered by severe weather events, including typhoons and winter storms, leading to a tighter supply of the commodity. While these factors provided some upward pressure on prices, sluggish demand and seasonal shifts in industrial and construction activities kept prices stable, resulting in a fluctuating trajectory throughout the fourth quarter of 2024.

Analyst Insight

According to Procurement Resource, the steel scrap prices are expected to maintain the same trend influenced by the weakness in the global steel markets amid the reduced demand and seasonal slowdown.
 

Steel Scrap Price Trend for the Q3 of 2024

In Q3 2024, the prices of steel scrap followed a fluctuating trajectory globally. Prices varied month-on-month, driven by demand from downstream sectors. The global scrap market faced significant pressures as the broader stainless-steel market remained subdued during the third quarter. In Asian markets, prices showed regional variations, yet the overall price trend was similar.

Heavy rains and adverse weather conditions initially hindered the collection of steel scrap, contributing to price drops. However, as the period progressed, limited scrap availability and policy-driven measures for infrastructure projects helped support a recovery in the market. While the holiday and festive seasons led to a modest rise in demand, overall consumption remained restrained. Similarly, European and North American markets experienced comparable price fluctuations, reflecting weaker steel production and export activities in those regions.

Analyst Insight

According to Procurement Resource, the prices of Steel Scrap are expected to maintain the same trend in the upcoming quarter. However, severe weather conditions such as snowstorms can pose a challenge in the collection of the scrap, making the recyclability difficult.
 

Steel Scrap Price Trend for the First Half of 2024

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In the first half of 2024, the global steel scrap market faced notable fluctuations, largely influenced by shifts in demand and supply dynamics. While production cuts and tight supply provided some support for prices, global economic uncertainties, coupled with softening demand, prevented significant upward movement. The downturn in construction and manufacturing, particularly in Europe, led to lower scrap generation, further exacerbated by high freight costs which hindered imports, particularly from Asia.

The reduced steel output across various regions further compounded the issue, with scrap supply tightening in key markets. In contrast, demand for premium scrap, driven by strong activity from flat steel producers, added complexity to the market as buyers competed for limited supplies. Additionally, the economic challenges in Asia, particularly in China’s real estate sector, negatively impacted demand for steel scrap, contributing to broader global weakness. Currency depreciation and high interest rates in key importers like Turkey and Egypt also dampened consumption, creating a more challenging environment.

Analyst Insight

According to Procurement Resource, As the global economy stabilizes in the latter half of 2024, steel scrap demand is expected to recover gradually, potentially leading to more balanced pricing. However, continued challenges in supply chain disruptions and regional economic pressures may dampen a full recovery in pricing and profitability.
 

Steel Scrap Price Trend for the Second Half of 2023

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Steel scrap prices were observed to be oscillating throughout the said period of H2’23. Prices mostly varied in different regions as the variations in feedstock costs and downstream demands determined the pricing situations in global markets. In the Asian steel scrap markets, China noticed a decline in prices attributed to a significant surge in the supply dynamics.

This led to the monthly average prices falling from around 307 USD/MT (CFR, China) in July to about 235 USD/MT in December’23. Similarly, the American markets moved swiftly with both-way movements. The monthly average prices here went from about 325 USD/MT (FOB, Heavy Melting Scrap) to around 365 USD/MT (FOB, Heavy Melting Scrap) in December’23. The European market, on the other hand, saw their monthly average prices climbing during the given period. High upstream costs because of import dependence and freight disturbances in the global markets pushed the prices up for steel scrap.

Analyst Insight

According to Procurement Resource, the Steel Scrap prices are expected to vary in the coming months as well, since the downstream demands will continue fluctuating going forward.
 

Steel Scrap Price Trend for the First Half of 2023

The market of steel scraps faced a consistent decline in the first two quarters of 2023 in China due to weak demand from global industries and an influx of cheap imports from other Asian countries and Russia, which increased the competition, and the domestic traders had to reduce their price quotations.

The US markets of steel scrap also suffered from the same challenges as the low rates of procurement from the downstream sectors, which led to the rise in the level of inventories.

During the initial months, the market performed steadily as the positive momentum of the prices was supported by the revival of construction activities, which was evident in its price figures that suggest that heavy melting scrap prices (FOB) rose from approximately 380 USD/MT in January’23 to 448 USD/MT in Mar’23. However, the negative effects of the downward trend of the end-user sectors in the second quarter led to the downfall of the trend to 352 USD/MT in June’23.

Analyst Insight

According to Procurement Resource, the price of Steel Scrap is estimated to grow steadily in the upcoming months as the demand and revival of global markets are expected to support the rise in the prices of steel scrap.

Procurement Resource provides latest prices of Steel 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.