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In the first quarter of 2025, the heavy melting scrap (HMS) market experienced a notable downturn, with prices declining by $317.68 per metric ton, FOB Rotterdam representing a 1.43% decrease. This reduction reflects a combination of softening global demand, particularly from major steel-producing countries facing slower economic activity and reduced construction output. Additionally, oversupply in certain regions, coupled with fluctuating energy costs and logistical challenges, contributed to downward pressure on prices. The modest percentage change suggests that while the absolute price drop was significant, the market remains relatively stable in broader historical terms, signalling potential resilience or stabilization in the upcoming quarters.
Q4 2024
In Q4 2024, the heavy melting scrap market is experiencing a notable decline, with prices dropping by $322.28 per metric ton, FOB Rotterdam representing a 5.41% decrease compared to the previous quarter. This downward trend may reflect a combination of factors such as reduced demand from steel producers, increased availability of scrap materials, or broader economic pressures impacting the metals industry. The price decline could influence steel manufacturing costs, potentially easing input expenses but also signalling cautious market sentiment. Stakeholders should closely monitor supply chain dynamics and global steel demand to anticipate further shifts in heavy melting scrap pricing going forward.
Q3 2024
In Q3 2024, the heavy melting scrap market experienced a notable price decline, dropping by $340.71 per metric ton, FOB Rotterdam which equates to a 2.63% decrease compared to the previous quarter. This reduction reflects weakening demand pressures in the steel recycling sector, possibly influenced by slower industrial activity and cautious market sentiment amid global economic uncertainties. The price adjustment suggests that suppliers may be facing increased inventory levels or reduced purchasing from steel mills, impacting overall scrap valuation. Stakeholders should monitor raw material sourcing strategies closely and anticipate potential further fluctuations as market conditions evolve.
Q2 2024
In Q2 2024, the market for Heavy Melting Scrap (HMS) experienced a notable downturn, with prices declining by $349.93 per metric ton, FOB Rotterdam representing a 5.66% drop. This decrease reflects weakening global demand, particularly from key steel-producing regions facing slower industrial output and cautious inventory management amid economic uncertainties. Contributing factors include softening raw material demand from major importers like Turkey and India, as well as increased availability of domestic scrap in some regions, which reduced reliance on imports. Additionally, global logistics improvements and lower freight costs may have pressured HMS prices further, intensifying the downward trend during the quarter.
Q1 2024
In Q1 2024, the price of Heavy Melting Scrap (HMS) saw a notable increase of $370.93 per metric ton, FOB Rotterdam representing a 7.89% rise from the previous period. This surge was primarily driven by strong demand in the steel manufacturing sector, especially in emerging markets, coupled with constrained global supply due to logistical disruptions and tighter scrap collection regulations in key exporting countries. Additionally, energy costs remained elevated, contributing to higher overall production expenses and further pressuring scrap prices. The price hike also reflects increased speculative interest and a global shift toward more sustainable steel production using recycled inputs, reinforcing the upward momentum in HMS valuations.
PriceWatch is your trusted resource for tracking global heavy melting scrap price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the heavy melting scrap market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence heavy melting scrap prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely heavy melting scrap market data.
Track PriceWatch's heavy melting scrap price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
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Heavy Melting Scrap (HMS) is a category of recyclable ferrous metal primarily composed of iron and steel. Commonly classified into HMS 1 and HMS 2 based on composition and density, it is widely used in steel production and foundry applications. HMS serves as a vital raw material for electric arc furnaces and induction furnaces, helping in the manufacturing of new steel products. Known for its high density and minimal impurities, heavy melting scrap contributes to sustainable metal recycling practices in the construction, automotive, and manufacturing industries.
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PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Property | Specification |
| Material type | Ferrous scrap, predominantly steel and iron |
| Composition | Wrought iron and/or steel scrap, no galvanized or blackened steel; thickness ≥ 6 mm |
| Carbon Content | Low (varies depending on source, <0.25%) |
| Size | Usually, ≤ 60 cm x 60 cm (can vary based on buyer requirement) |
| Density | Approximately ≥ 0.7 tons per cubic meter (loose) |
Applications
Steelmaking & Metal Recycling:
Heavy melting scrap is a primary raw material for steel production in electric arc furnaces (EAF) and induction furnaces. It provides an efficient and cost-effective source of recycled steel, helping reduce the need for virgin iron ore and minimizing environmental impact.
Raw Material Availability – HMS is derived from discarded steel and iron scrap. The availability of obsolete scrap (from construction, demolition, and end-of-life products) affects supply and pricing.
• Global Supply and Demand – Demand from steel mills, especially in developing nations, can drive prices up. Oversupply due to increased collection or reduced demand will exert downward pressure.
• Steel Market Trends – HMS is a key input in electric arc furnace (EAF) steelmaking. Trends in finished steel prices and production rates directly impact scrap demand and prices.
• Energy and Processing Costs – Collection, sorting, cutting, and transportation of HMS require labour and energy. Increases in fuel or electricity prices can raise processing costs, influencing overall prices.
• Transportation and Logistics – Shipping costs, freight rates, port congestion, and logistical disruptions affect HMS pricing, especially in the global market.
• Regulatory and Environmental Policies – Government regulations on scrap recycling, environmental compliance, and export restrictions (e.g., bans or quotas) can alter market dynamics and pricing.
• Currency Exchange Rates – Since HMS is widely traded internationally, fluctuations in exchange rates (especially against the US dollar, which is commonly used in trading) can affect pricing in local markets.
• Geopolitical Factors – Conflicts, trade wars, and sanctions can disrupt scrap flows or affect global confidence, impacting pricing volatility.
• Seasonality – Harsh weather conditions (e.g., winter in northern countries) can slow down scrap collection and transportation, tightening supply and influencing prices.
The availability and cost of raw materials such as high-carbon steel and alloy coatings directly affect heavy melting scrap production costs and pricing.
Heavy melting scrap prices generally rise with inflation, as higher energy, transportation, and labor costs increase the overall cost of recycling and processing scrap metal. However, global steel demand and supply chain dynamics often play a more significant role in influencing HMS prices, which can moderate or amplify the impact of inflation.
PriceWatch offers a range of tools and services to track commodity prices effectively:
Real-Time Data: Access market intelligence and data on global heavy melting scrap supply chains.
Expert Analysis: Insights into market trends and potential risks.
Risk Assessment: Tools to evaluate supply chain vulnerabilities.
Benchmarking: Compare heavy melting scrap prices and sourcing practices.
Supplier Intelligence: Information on supplier reliability and financial health.
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