Rising freight rates and cautious procurement are putting pressure on the global scrap steel export market.

Category: Blog

Category: Industry News

Time:2026-03-23

Market sources reported on March 23 that, as of the week ending March 20, sentiment in the global scrap steel export market remained cautious, with prices broadly stable across major regions. Weak export demand, rising freight and fuel costs, and uncertainty about downstream steel demand continued to weigh on trading activity, leading most market participants to adopt a wait-and-see approach. Current FOB levels are estimated at around US$310–320 per ton for shredded scrap and US$270–290 per ton for heavy melting scrap. Despite buyer interest, firm offers remain scarce, and export activity remains limited. A key factor is the sharp rise in freight rates, with container costs increasing substantially and widening the gap between FOB and CIF prices, thereby undermining trade viability. Freight rates have surged, with the cost of a 20-foot container climbing from roughly US$1,400 to US$2,100, which has driven up the landed cost of scrap steel.

Market sources said on March 23 that, as of the week ending March 20, sentiment in the global scrap steel export market remained cautious, with prices broadly stable across major regions. Weak export demand, rising freight and fuel costs, and uncertainty about downstream steel demand continued to weigh on trading activity, leading most market participants to adopt a wait-and-see approach.
　　United States
　　Supported by stronger sentiment in Turkey and rising freight rates, the U.S. scrap market advanced this week. Export prices strengthened, with 80:20 heavy-melt scrap climbing from $346 to $353 per tonne and shredded scrap rising from $368 to $373 per tonne; however, overall export activity remains limited.
　　With no significant East Coast export sales reported, more supply remains in the domestic market, leading to an increase in overall supply. Improved weather conditions have boosted scrap steel flows, further intensifying supply-side pressure.
　　Consequently, amid rising supply, grades of old scrap such as remelted scrap and crushed scrap may come under downward pressure in April trading. By contrast, driven by tightening supply and steady demand from steel mills, premium grades like crushed scrap are expected to remain relatively resilient.
　　Domestic prices have remained broadly stable, with DAP-grade crushed scrap at USD 445–450 per tonne, general crushed scrap at USD 450 per tonne, steel plate scrap at USD 430 per tonne, and remelt scrap nearing USD 400 per tonne. However, rising fuel costs and weak export demand continue to weigh on overseas shipments.
　　Europe
　　Supported by steady demand from steel mills, the EU and UK scrap markets remained stable to slightly stronger this week, while domestic prices rose by €5–10 per tonne ($6–11), reaching €275–285 per tonne ($317–329). However, weaker import demand from Turkey and a sluggish finished-steel market have dampened export sentiment. Although scrap collection has improved since the winter, overall generation remains below normal levels due to subdued manufacturing activity.
　　Currently, FOB prices across regions are estimated at around US$310–320 per ton for crushed scrap and US$270–290 per ton for remelt-grade scrap. Despite buyer interest, firm offers remain scarce, and export activity remains limited. A key factor is the sharp rise in freight rates, with container costs increasing substantially and widening the gap between FOB and CIF prices, thereby undermining trade viability. Freight rates have surged, with the cost of a 20-foot container climbing from approximately US$1,400 to US$2,100, which has driven up the CIF cost of scrap steel.
　　Indian procurement interest remains subdued, with some volumes shifting to Pakistan due to relatively strong demand. In addition, the ongoing Eid al-Fitr holiday is expected to keep trading activity sluggish over the next 7–8 days.
　　Brazil
　　Scrap prices remained stable this week as market participants assessed the impact of the new federal tax rules issued on March 10. Negotiations stayed cautious, with limited buy and sell interest. The FOT assessment for 80:20 remelt scrap stood at R$848–850 per tonne ($162–$163), steel scrap at R$765–767 per tonne ($147), and clean scrap at R$925–930 per tonne ($177–$178)—all unchanged from the previous week.
　　Export prices have also remained stable, at USD 285 per tonne FOB for remelt scrap and USD 305 per tonne FOB for crushed scrap. Market sources report that recyclers and steelmakers are adopting a wait-and-see approach as they assess how the revised tax structure will impact pricing and trade flows.
　　Outlook
　　In the United States, scrap prices are likely to remain under pressure due to weak export demand and increased domestic supply. The European market is expected to remain broadly stable, with rising freight rates offsetting subdued purchasing interest. Prices in Mexico may consolidate, leaning slightly lower, while the Brazilian market is likely to stay stable as market participants assess the impact of new tax regulations.
　　Despite these regional disparities, Turkish steelmakers are expected to remain active in the import market and continue to rely on overseas procurement due to limited domestic scrap supply.

Keywords: Rising freight rates and cautious procurement are putting pressure on the global scrap steel export market.

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