Local EU scrap markets move up while export prices soften, uncertainty prevails

At the end of the BIR (Bureau of International Recycling) Convention which took place in Valencia, Spain, on May 26-28, 2025, the overall mood in the European scrap market was divided: on the one side, scrap collectors and exporters - and the associations representing them - were worried about the extent of a potential ban on scrap exports, which has been discussed for several months and that, according to the last version of the EU Steel and Metal Action Plan, will be clarified by the third quarter of 2025. On the other side, steel producers would like to keep this resource within the European Union. A common factor, however, has emerged among all steel market players and that is uncertainty. The widespread unpredictability regarding the global economic and political balance is causing immobility in business and risk aversion in all European markets.

More specifically, the first rumors of movements for the June round of scrap purchases by mills indicate increases of about €10-15/mt in Germany. Scrap demand is growing in order to meet the apparent improvement in long steel demand. However, the overall sentiment seems to be rather negative in the scrap market. Local collection prices at export yards are declining, standing now at around €260/mt DAP for HMS I/II 80:20 scrap. In the local German scrap market, the problem of high transportation costs by truck remains relevant, due to the lack of vehicles that has been seen for several months now. In the meantime, however, river transport costs are softening thanks to increases in the water levels of the Rhine.

Silence characterizes the local scrap market in Poland, but, according to some rumors - which could not be verified by the time of publication - collection prices at export yards stand at around €270/mt DAP for HMS I scrap. Tension is growing among local producers regarding a possible ban on scrap exports from Ukraine, which should come into force in July, while at the same demand for long products is declining.

Scrap prices in the local market in Spain are higher on average than those registered in the Italian market and this applies to all grades. At the convention in Valencia, the lack of activity of local Spanish producers was particularly noted.

Finally, as far as the Italian scrap market is concerned, price increases in the order of €10-15/mt have already been recorded for all scrap grades, and traders expect further upticks of €5-10/mt to occur next week. These would de facto bring local scrap prices back to mid-April levels seen before the subsequent collapse. Several sources operating in the scrap market in Italy, in fact, agreed that the sudden drop recorded a few weeks ago would soon be followed by an increase that would rebalance the market. "With such low prices, collection becomes impossible. This is the reason behind the lack of material," a source commented.

Scrap prices in the Italian market this week are as follows:

Prices include delivery and exclude VAT.