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| Global scrap metal markets |
The global scrap metal market experienced a noticeable decline in July, with prices falling by $10–30 per tonne across major regions. This downward trend persists as weak finished steel demand dampens appetite from mills.
Market Volatility and Regional Contractions
Turkey’s market demonstrated high volatility throughout July, as average quotations for HMS 1&2 80:20 scrap dropped by 2.5% to $370/t CFR. Despite a brief mid-month rebound caused by geopolitical tensions and rising freight rates, buyers maintained a cautious wait-and-see approach. Meanwhile, German and Italian markets suffered from a logistics crisis, with low water levels on the Rhine further squeezing transport capacity. As a result, European steelmakers reduced production, pushing prices lower in an oversupplied environment.
Outlook for the Scrap Metal Market
Market participants anticipate a moderate downward correction in the short term. However, the summer decline in scrap collection combined with depleted producer stocks creates potential for a price recovery. If purchasing activity accelerates in late August or early September, the scrap metal market may find its footing once again. Steelmakers continue to monitor the balance between high logistics costs and the necessity of maintaining supply chains.
ScrapInsight Commentary
Currently, the global scrap price is declining due to weak demand in the upstream industry combined with logistics bottlenecks. With the seasonal peak season entering in September and demand for replenishing inventory becoming more apparent, downward pressure on prices is expected to ease, but supply chain risks such as waterway transport difficulties in Europe remain key factors that increase price volatility.
