The Heavy Melting Scrap Price Trend has been under close watch in 2025, especially as global steel markets continue to face pressure from weak demand, oversupply, and economic uncertainty. Heavy Melting Scrap (HMS) is one of the most widely used scrap categories in steelmaking, mainly sourced from demolished structures, old machinery, and end-of-life industrial equipment. Because of its widespread use and large volumes, HMS prices often reflect the overall health of the steel and construction industries. In Q3 2025, the trend has largely remained downward, shaped by real-world factors that are easy to understand when viewed through everyday market behavior.

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What Is Heavy Melting Scrap and Why It Matters

Heavy Melting Scrap usually comes in grades such as HMS 1&2 (80:20) and is commonly used by steel mills, particularly in regions where electric arc furnaces and induction furnaces operate. Compared to prime scrap, HMS is more available and generally cheaper, making it a preferred raw material during times of cost pressure. When steel demand is strong, HMS prices tend to rise steadily. When construction slows and steel sales weaken, HMS prices are usually among the first to feel the impact.

Because HMS is linked closely to construction activity, infrastructure spending, and demolition projects, its price trend gives a realistic picture of how active the broader economy is.

Global Market Situation in Q3 2025

During the third quarter of 2025, heavy melting scrap prices across the global market moved lower. Steelmakers reduced raw material purchases due to weak finished steel demand and cautious production planning. At the same time, scrap supply remained healthy, creating an imbalance between availability and consumption.

Another important factor was competition from alternative raw materials such as Direct Reduced Iron (DRI) and steel billets. In some regions, billets became more competitively priced, encouraging mills to shift away from scrap-based production. This added further pressure on HMS demand.

International trade activity also softened. Key importing countries reduced buying volumes, while exporters struggled to find strong demand. Rising freight costs and currency volatility made buyers even more cautious, limiting aggressive purchasing.

United States Market: Stable but Under Pressure

In the United States, the heavy melting scrap market experienced a mild but steady decline during Q3 2025. Prices fell compared to the previous quarter, mainly due to softer demand from domestic steel mills. Construction activity slowed in several regions, affecting rebar and structural steel consumption, which directly reduced scrap buying interest.

Steel producers focused on protecting margins by controlling input costs. As a result, mills negotiated scrap prices carefully and avoided overbuying. Export opportunities were limited, meaning more material stayed within the domestic market.

Despite the downward movement, the U.S. market did not experience sharp volatility. Supply remained relatively consistent, and mills managed inventories efficiently. This created a sense that the price correction was gradual rather than a sign of a severe downturn.

By September 2025, prices declined further on a monthly basis. Increased scrap availability from demolition projects and recycling activities added to supply, while demand from steelmakers remained restrained. Overall, the U.S. HMS market showed stability but with a clear downward bias.

Netherlands and the European Market

The Netherlands plays a key role in the European scrap trade, particularly through Rotterdam, which acts as a major export hub. In Q3 2025, heavy melting scrap export prices from the Netherlands declined compared to Q2. This was largely due to weak steel demand across Europe and reduced export activity, especially toward Turkey.

European steel producers faced lower order volumes from construction and manufacturing sectors. Automotive production remained sluggish, and infrastructure projects progressed slowly. As a result, mills reduced output and raw material procurement.

On the supply side, scrap collection remained strong. High recycling rates and steady inflows from domestic and neighboring markets led to rising inventories. This oversupply situation weighed heavily on prices.

In September 2025, prices slipped further. The lack of strong buying interest from international markets combined with local oversupply kept pricing pressure intact. Dutch scrap merchants, being active in global trade, were directly affected by declining global demand, reinforcing a bearish sentiment heading into Q4.

Turkey: A Key Import Market Feeling the Strain

Turkey is one of the world’s largest importers of heavy melting scrap, making it a critical price driver in the global market. In Q3 2025, HMS prices in Turkey declined moderately compared to the previous quarter. Weak domestic steel demand, oversupply in the scrap market, and competition from billet imports played major roles.

Construction activity in Turkey remained subdued, particularly in the rebar segment. Steel mills operated cautiously, buying scrap only when necessary and resisting sharp price increases. Sellers attempted to defend prices, but limited demand restricted their ability to do so.

Despite the decline, prices did not collapse. Mills and suppliers both showed restraint, leading to a relatively stable but soft market. By September 2025, prices edged lower again due to slower construction activity and increased availability of cheaper scrap imports. Currency fluctuations and global economic uncertainty further influenced buyer sentiment.

Role of Construction and Infrastructure

Construction is one of the biggest drivers of heavy melting scrap demand. In 2025, construction activity across many regions slowed due to high financing costs, delayed projects, and cautious government spending. This directly impacted steel consumption and, in turn, scrap demand.

When fewer buildings are constructed and fewer infrastructure projects move forward, steel usage drops. Mills then reduce production, and scrap buying slows. At the same time, demolition activities often continue, adding scrap to the market even when demand is weak. This mismatch was clearly visible in Q3 2025.

Freight, Currency, and Cost Factors

Freight costs remained elevated during the period, making international scrap trade more expensive. Currency volatility added another layer of uncertainty, especially for import-dependent countries. Buyers preferred to wait rather than commit to large purchases, which limited trading activity.

These cost-related factors did not act alone but combined with weak demand to reinforce the downward Heavy Melting Scrap Price Trend.

Market Outlook Going Forward

Looking ahead, the outlook for heavy melting scrap prices remains cautious. Unless there is a noticeable recovery in steel demand or a disruption in scrap supply, prices are likely to remain under pressure. Seasonal factors may provide short-term support, but they are unlikely to change the overall direction on their own.

Steelmakers will continue to prioritize cost control, while scrap suppliers may face tighter margins. Any meaningful improvement will depend on stronger construction activity, improved manufacturing output, and better global economic confidence.

Conclusion

The Heavy Melting Scrap Price Trend in 2025 clearly mirrors the challenges facing the global steel and construction industries. Across key markets such as the United States, the Netherlands, and Turkey, prices declined due to weak demand, oversupply, cautious buying behavior, and competition from alternative raw materials. While the declines have been moderate rather than extreme, the overall sentiment remains soft.

For now, the market is focused on stability rather than growth. Both buyers and sellers are navigating uncertain conditions with caution, waiting for clearer signs of recovery. Until demand strengthens meaningfully, heavy melting scrap prices are expected to remain under downward or sideways pressure, reflecting the broader realities of the global industrial landscape.

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