Posted on 23 Sep 2025
US scrap and steel markets have held broadly steady entering the fourth week of September, though scrap sentiment has weakened further as export sales faltered and mill outages loom. Finished steel remains has split between pressured flat steel and firmer longs.
In the flats market, hot rolled coil is testing a floor as outages, expected to idle about 650,000 short tons of capacity between September and December, help balance supply. Rebar, meanwhile, remains steady on infrastructure support and tighter supply.
The US scrap market is seen bracing for price declines in October trading. Many market participants expect prime grades to see the steepest cuts, around $20/gross ton, with shredded easing by $10/gt and obsoletes showing modest downside. Others, however, warn of even sharper drops. Mills, meanwhile, anticipate stronger margins in the fourth quarter as scrap costs are projected to fall faster than finished steel prices amid improved flows and outages.
The outlook is tilting cautiously to the downside, with October restocking and seasonal construction activity seen as potential stabilisers. Still, most participants remain bearish as export markets are offering little support.
For US West Coast trade, containerised HMS 1&2 80:20 slipped, with bids at $290-295/tonne cfr Taiwan and offers at below $300/t. Taiwan’s Feng Hsin kept scrap and rebar prices steady on Monday amid lower-priced deals last week.
On the East Coast, Turkish bookings stayed limited despite there being demand. A US-origin deal early last week was done at $338/t cfr Türkiye for HMS 1&2 90:20, equating to $335/t for 80:20. By week’s end, suppliers had raised targets, looking to Egyptian demand and Türkiye’s Inward Processing Regime (DIR) revision to revive buying interest.
Source:Kallanish
