The recycled steel market continues to feel the weight of macroeconomic instability in 2025. According to the BIR Ferrous Division's World Mirror report, persistent uncertainty has suppressed global sentiment, keeping prices flat and markets subdued.
Europe: Supply tightness but no price upside
Shredder operations in the UK are running at only 60 percent capacity, highlighting material scarcity. Despite this constraint, pricing momentum is limited, reflecting weak downstream demand. The US dollar’s depreciation against the euro has further weakened sale prices in Turkey, which is a key export market. Simultaneously, European finished steel prices remain under pressure, curbing prospects for a broader recovery.
US: Temporary stabilization amid weak demand
Recycled steel prices dropped $40/mt in April and May, after an earlier $80/mt rise. Stabilization occurred in June and July due to rapid dealer-mill negotiations and temporary mill outages. While import tariffs have helped domestic steel production, consumer demand indicators remain soft, with retail sales and confidence signaling declining consumption.
Asia: Mixed signals across markets
China’s steel exports surged 8.9 percent year on year to 48.47 million mt in the January-May period of 2025, placing downward pressure on regional recycled steel demand. In South Korea, oversupply and aggressive pricing have led to plant shutdowns. Taiwanese mills face weak fundamentals, with finished steel prices near four-year lows and exchange rate volatility hurting competitiveness. Bangladesh imports from Japan grew 270 percent year on year, as shorter lead times and smaller cargoes proved cost-effective. Vietnam continues steady imports from Japan, maintaining monthly volumes near 300,000 mt between February and May.
Middle East: Construction supports demand
The Gulf Cooperation Council (GCC) region benefits from strong construction activity, sustaining steel demand. While domestic recycled steel supply is slowly growing, constraints remain. Notably, the UAE is investing in green shipbreaking, aiming to enhance local recycling capacity.
Global usage & trade statistics
- China remains the world’s top recycled steel consumer, using 57.62 million mt in the first quarter of 2025, despite a 1.6 percent year on year decline.
- India’s usage jumped 19.1 percent to 10.06 million mt, outpacing its 6.8 percent rise in crude steel production to 40.1 million mt.
- Turkey led recycled steel imports with 4.72 million mt, down 11.5 percent year on year, followed by India at 2.28 million mt, down 0.4 percent.
- The EU-27 emerged as the top exporter, increasing shipments by four percent year on year to 4.58 million mt.
