Global steel scrap prices experienced a significant decline at the end of April, driven by reduced demand and shifting market dynamics. In Europe, HMS 1/2 (80:20) scrap prices dropped by $45 per ton, settling at $310 per ton FOB Rotterdam. This decrease was influenced by a 20 percent reduction in purchases by major buyers like ArcelorMittal and halted purchases by Italian steel companies due to low rebar sales and full factory warehouses.
In the United States, HMS 1/2 (80:20) scrap prices fell by $47 per ton, reaching $304 per ton FOB East Coast. Electric mills in the US sought price concessions from scrap suppliers as iron ore prices declined. Similarly, in Turkey, HMS 1/2 (80:20) scrap prices dropped by $49 per ton to $331 per ton CFR, with Turkish rebar mills opting for cheaper billets from third-party producers.
China also saw a decrease in HMS 1/2 (80:20) scrap bids, which fell to $326 per ton CFR by mid-April, down from $344 at the start of the month. This decline was attributed to reduced purchases by electric power plants amid falling production volumes.
These price reductions reflect the broader challenges in the global steel market, including trade wars, oversupply, and fluctuating demand.
