The prices are:
- MB-STE-0100 Steel scrap, HMS 1&2 (80:20 mix), export, fob main port UK, $ per tonne
- MB-STE-0099 Steel scrap shredded, export, fob main port UK, $ per tonne
- MB-STE-0095 Steel scrap shredded, import, cfr Turkish port, $ per tonne
- MB-STE-0420 Steel scrap, HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne.
The changes were made in order to ensure that the liquidity and price volatility in these markets is adequately captured. The changes were welcomed by market participants seeking more granular coverage and increased transparency.
In the UK, the decline of domestic steelmaking means the scrap market is dominated by exports. Exporters told Fastmarkets that daily UK export prices would be a valuable reference and market tool, acting as a link between the domestic inter-merchant trade and the international markets.
Europe is a net exporter of scrap and a major contributor to the international markets. Both Europe and the UK are key suppliers to Turkey, the world’s largest scrap importer, as well as important markets such as Egypt and South Asia.
With scrap’s growing importance through its role in the decarbonization of the steel industry, competition between domestic steelmakers in Europe and traditional importing markets for this essential raw material, particularly for the higher-quality grades such as shredded, is set to rise, according to sources.
Timely and accurate price transparency across the key components of the international market is therefore essential.
Importantly, prices for both HMS (heavy melt scrap) and higher-grade shredded scrap are included in the changes. The move to daily publishing for the CFR Turkey scrap price will complement the long-standing daily CFR Turkey indices for HMS — covering both US- and European-origin material.
The EU exported over 21 million tonnes of steel scrap in 2024, according to Global Trade Tracker, while the UK exported over 7 million tonnes.
Turkey, the single largest importer of steel scrap, imported over 20 million tonnes in 2024.
All four prices have changed from weekly publishing on Friday to daily publishing, at 4pm UK time. Minimum tonnages were also aligned to 5,000 tonnes for all concerned prices, which is the standard in the international bulk steel scrap market.
Previously, of the prices in question, only MB-STE-0420 Steel scrap, HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne, was priced as an index. A key aspect of the change from assessments to indices is that the prices will be published as a single figure, rather than a range. Fastmarkets’ index methodology applies a tonnage-weighted model and allows for different grades and geographies to be normalized.
The full steel scrap index methodology can be found here.
The price name for MB-STE-0095 was also amended to include the incoterm CFR Turkey.
A consultation period started on May 12 and ended on June 25. The changes took effect from Monday June 30.
The new price specifications are as follows:
MB-STE-0100 Steel scrap HMS 1&2 (80:20 mix) export, fob main port UK, $ per tonne
Quality: HMS 1&2 (80:20 mix) compliant with ISRI specifications 200-206. Grades normalized: Shredded, HMS 1&2 (70:30), HMS 1&2 (90:10), HMS 1, Bonus Grade, P&S, and A3 material
Quantity: Min 5,000 tonnes
Location: FOB UK
Timing: Up to 6 weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time.
MB-STE-0099 Steel scrap shredded export, fob main port UK, $ per tonne
Quality: Shredded material, compliant to ISRI specifications 210-212. Grades normalized: HMS 1&2 (80:20 mix), HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3
Quantity: Min 5,000 tonnes
Location: FOB UK
Timing: Up to 6 weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time.
MB-STE-0095 Steel scrap shredded import, cfr Turkey, $ per tonne
Quality: Shredded material, compliant to ISRI specifications 210-212. Grades normalized: HMS 1&2 (80:20 mix), HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3
Quantity: Min 5,000 tonnes
Location: CFR Turkey
Timing: Up to six weeks
Unit: USD per tonne
Payment terms: LC, bank transfer
Publication: Daily, 4pm London time
Notes: Normalized to Northern Europe-origin.
MB-STE-0420 Steel scrap HMS 1&2 (80:20 mix), fob Rotterdam, $ per tonne
Quality: HMS 1&2 (80:20 mix), NE origin compliant to ISRI specifications 200-206. Grades normalized: shredded, HMS 1&2 (70:30 mix), HMS 1&2 (90:10 mix), HMS 1, Bonus Grade, P&S, and A3 material
Quantity: Min 5,000 tonnes
Location: FOB Rotterdam, Netherlands
Timing: Within six weeks
Unit: USD per tonne
Payment terms: Cash, other payment terms normalized to Rotterdam
Publication: Daily, 4pm London time
Notes: Bulk carrier from Northern Europe.
These prices are part of Fastmarkets’ scrap package.
To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these prices, please contact Ross Yeo by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Ross Yeo re: steel scrap prices.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology.
