Muted Markets & Macroeconomic Malaise Mute Momentum

The global recycled steel sector has been wrestling with weak fundamentals and macro-economic uncertainty, according to the latest BIR World Mirror. Despite constrained material flows and reports of shredders in the UK running at only around 60% capacity, the potential for a price rebound remains capped. "The missing piece is still consumer demand," noted BIR’s Ferrous Division, adding that market mood is weighed down by fragile retail indicators and cautious end-users.

Currency Conundrums & Continental Challenges Curtail Confidence

A significant fall in the $ against the € has driven real declines in sales prices in Turkey, a key buyer of recycled steel. Finished steel prices continue to face pressure across Europe, further damping any potential for market recovery. "Even where supply tightness exists, buyers remain hesitant to accept higher offers due to currency shifts and uncertain economic signals," observed a European market analyst quoted in the report.

American Adjustments & Austerity Amidst Active Alloy Appetite

In the USA, prices for recycled steel fell by $ 40 per metric ton in both April and May after an earlier gain of around $ 80 per metric ton. Swift negotiations between dealers and mills helped keep prices flat in June and July, despite production disruptions from planned and unplanned outages. While steel output has stayed buoyant under protective import tariffs, demand-side weakness continues to cast a long shadow. "Production is healthy, but consumption tells a slower story," said a US-based trader.

Asian Ambivalence & Aggressive Exports Aggravate Anxiety

Asia’s seaborne recycled steel markets remain under pressure as Chinese steel exports surged by 8.9% year on year in the first five months of 2025 to 48.47 million metric tons. In South Korea, major steel producers have suspended operations to counter aggressively-priced oversupply. Taiwanese mills also face four-year low finished steel prices. "The buying mood is subdued, with mills cautious amid exchange volatility & cheaper billet alternatives," noted a senior trader.

Bangladesh Boost & Billet Benefits Bolster Buying Behaviour

Bangladesh has maintained consistent demand for imported recycled steel, with supply from Japan skyrocketing by 270% year on year, thanks to flexible shipment sizes and shorter lead times. Vietnam too has been a steady buyer, importing around 300,000 metric tons per month between February and May. This preference for Japanese supply highlights the region's desire for adaptable sourcing amid broader global uncertainty.

Middle Eastern Momentum & Metallurgical Modernisation Multiply Moves

Within the Gulf Cooperation Council, robust construction activity has kept steel demand resilient. Local recycled steel supply, although growing, remains tight. In response, the UAE has invested in green shipbreaking projects to enhance domestic recycled steel availability. "The region's focus is on building sustainable local supply chains to meet long-term demand," an industry observer commented.

Statistical Summits & Sustainable Steel Strategies Strengthen Stance

BIR's statistics advisor Rolf Willeke reported that China’s crude steel production rose in the first quarter of 2025, yet recycled steel use slipped by 1.6% to 57.62 million metric tons, still making it the largest global consumer. India, however, boosted recycled steel use by 19.1% to 10.06 million metric tons, even as crude steel output climbed by 6.8%. Turkey remained the top importer despite an 11.5% drop to 4.716 million metric tons, while the EU-27 led exporters with a 4% increase to 4.578 million metric tons.

Green Goals & Global Governance Guide Grand Gestures

In its recent “Position Paper on Green Steel,” BIR stressed that recycled steel already delivers up to 80% fewer carbon emissions than traditional blast furnace-basic oxygen furnace routes. Yet, many certification schemes still emphasize process over actual emissions. "Standards should reward carbon performance, not production labels," BIR argued, underlining recycled steel's proven and scalable role in the decarbonization journey.

Key Takeaways

• Tight supply and uncertain demand have kept recycled steel prices subdued worldwide.

• China remains the largest consumer, while Turkey leads in imports and the EU-27 in exports.

• BIR calls for emissions-based standards to better recognize recycled steel's low-carbon benefits.