Aug 15

• The HRC-Scrap Disconnect: In the US, the spread between domestic hot-rolled coil (HRC) and prime busheling scrap has widened to its highest level since early 2022, with HRC prices coalescing around $1,180 per short ton while scrap prices stall or fall. This dynamic is causing mills to delay their late-August pricing and purchasing decisions, creating a sluggish environment for ferrous scrap exporters.

• European Summer Lull: The EU HRC and stainless steel markets remain exceptionally quiet this week. Buyers are resisting higher prices and staying defensive amid elevated energy costs and the looming pressure of the Carbon Border Adjustment Mechanism (CBAM) requirements.

• Export Strategy Focus: With countries increasingly implementing trade protectionism and tariffs against bulk steel exports, exporters must double down on specialty alloy steels. Emerging markets in Southeast Asia and the Middle East remain the most viable targets for corrosion-resistant and high-strength steel grades, whereas the US and EU markets are heavily guarded by tariffs and stringent carbon reporting.