Steel Scrap Prices – Historical Graph
- The average price in the past 3 days is
- The average price in the past 7 days is
- The average price in the past 30 days is
- The average price in the past 365 days is
Popular questions about steel scrap prices:
Steel Scrap Prices Explained
Steel scrap prices fluctuated globally due to the uncertain steel market prospects. The World Steel Association’s research cited a 1.1% decline in steel demand in the U.S. However, the need will bounce back in 2024 as hot-rolled export demand from Turkey shows improvement. Also, the country relies on most of its annual scrap supply from the U.S. However, the latter experiences a shortage of prime scrap, turning to Canada to make up for the deficit.
Why are steel scrap prices fluctuating?
1. Transportation Costs
It is one of the most important considerations in the steel scrap trade as the distance between the location of the scrap and the recycling facility determines how much transportation will cost. Generally, the cost of transportation is lower when a scrap yard is nearby as the amount of fuel or oil consumed for the journey is reduced compared to covering a longer distance.
Thus, steel scrap prices are largely determined by the distance covered.
2. Stockpile Levels
China and India are two of the world’s largest consumers of scrap steel. If these countries hoard too much scrap steel or if China processes scrap more effectively, it may cut back on imports from other nations, lowering steel scrap prices. On the other hand, if the demand for scrap steel is higher than the supply, consumers will look to import more, spiking up its costs.
3. Market Requirements
The scrap steel industry’s pricing dynamics are influenced by market demands. Changes in the foreign processing methods of specific metals might lead to fluctuations in the market, hence influencing the steel scrap price. Additionally, a country may decide not to acquire additional metal for several reasons, such as unexpected disruption in the geopolitical environment.
For instance, Turkey used to be a significant buyer of steel scrap but it stopped purchasing due to a political crisis. Furthermore, the country hasn’t yet recovered from the devastating earthquake in February 2023.
4. Supply and Demand
Prices are subject to increase in situations where there is a strong demand and a limited supply; the scrap market is no exception.
Thus, increased demand for metal due to building projects causes steel scrap prices to rise. However, there has been a fall in demand from overseas in the previous six months due to rising awareness of recycling. Also, the introduction of new scrappers contributed to an excess of supply, which further affected steel scrap pricing.
Which variables impact the price of steel scrap?
- Transportation Costs
- Stockpile Levels
- Market Requirements
- Supply and Demand
- Government Regulations
- Tariffs
Where does steel scrap come from?
Steel scrap plays a crucial role in environmental conservation by preserving natural resources, minimizing pollution, and saving energy. As a result, this process benefits the economy by producing the raw materials required for the creation of new items, in addition to supporting environmental sustainability.
Additionally, steel scrap is gathered from many sources and goes through an essential collection and recycling process which contributes to the efficiency of the steel industry’s sustainability. Here are common sources of steel scrap:
1. Manufacturing Processes – During the manufacturing of steel products, there is often excess or leftover steel material that becomes scrap. This includes cut-offs, defective products, or trimmings generated during the production of steel components.
2. Industrial Scrap – Steel scrap is produced as a byproduct in various industries, encompassing manufacturing plants, construction sites, and other industrial facilities where steel is used.
3. End-of-Life Products – Products containing steel such as cars, appliances, machinery, and buildings are commonly disassembled and recycled, highlighting steel’s high recyclability. Furthermore, steel from destroyed buildings is recycled in this technique, and steel from used cars is recovered.
4. Construction and Demolition Waste – Construction sites and demolition projects generate significant amounts of steel scrap. This includes beams, pipes, and other structural components that are no longer needed.
5. Recycling Facilities – Facilities are essential to the steel recycling process because they collect, process, and recycle steel scrap. Additionally, they get scrap from several sources, such as companies, industries, and consumers.
6. Outdated Equipment – Older technology, industrial and agricultural machinery, and other unused or outdated equipment and machinery also add to the supply of scrap metal.
What are the uses of steel scrap?
Steel scrap is a valuable raw material that can be recycled and used in a variety of industrial applications. This property helps to maximize resource efficiency and reduce environmental impact.
These sectors benefit from the utilization of steel scrap because it reduces greenhouse gas emissions and protects vital natural resources like limestone, coal, and iron ore. Here are some of the key industrial applications of steel scrap:
1. Construction – The construction industry uses steel scrap to make reinforcing bars, structural elements, and other building supplies.
2. Automotive – Steel scrap is used in the automotive industry to make trucks and automobile engines.
3. Machinery – It finds significant application in the production of farm machinery, electrical motors, and production equipment.
4. Domestic Appliances – Recycled steel is also found in domestic appliances like refrigerators, washing machines, and ovens.
5. Steelmaking – Scrap is an essential part of every steel plant’s raw material blend and is used in primary and secondary steel production processes.
6. Remanufacturing – Steel scrap is used by remanufacturing firms, such as those that produce wind turbines and household appliances to create new goods.
What is the future price of steel scrap?
The steel scrap market is expected to develop mostly at the expense of the construction industry, which heavily relies on steel for strength and adaptability. Additionally, several industries like automobile, shipbuilding, construction, and infrastructure are predicted to experience an increase in demand for recovered scrap metal.
More importantly, the commodity’s sustainable quality has become increasingly important in most industries. ISSF (International Stainless Steel Forum) noted that any given stainless steel item contains about 60% recycled material which supports the global green initiative.
On its key global markets, Europe’s demand remains robust with a significant increase of 50% in net imports. Japan has the biggest rise in stainless steel scrap demand for domestic use. India has started reloading their inventories by actively booking stainless scrap cargo.
Furthermore, the growing need for steel scrap is attributed to its role in reducing worldwide emissions, since recycling lessens the environmental consequences of iron ore exploitation. Thus, the price of steel scrap will be $570.43 per ton in 2028 and the value of its market is projected to reach $103.97 billion by 2032 at a CAGR of 5.4%.