CRU Reviews Steel and Scrap Market Trends in 2025

Raw materials account for a significant share of fastener production costs, and ongoing price volatility continues to affect margins and pricing strategies. Recently, Shankhadeep Mukherjee, Principal Analyst at CRU Group, shared insights into global steel and raw material market developments in 2025.

During the year, wire rod and long steel product prices showed clear regional divergence. The CRU long products price index started 2025 at around 195, weakened mid-year, and recovered slightly toward year-end. In Europe, the approaching implementation of the Carbon Border Adjustment Mechanism (CBAM) slowed import activity and strengthened pricing power for domestic mills. In the United States, higher Section 232 tariffs drove wire rod prices higher, with high-carbon wire rod prices rising by around 33% year on year. In Asia, prices remained under pressure, largely due to weak demand in China.

End-user demand remained generally subdued, particularly in the construction sector. China’s real estate downturn continued to weigh on demand, while infrastructure investment failed to provide sustained support. Construction activity in Europe stayed weak, with purchasing largely limited to immediate needs. In the US, demand was mixed, with data centre construction emerging as one of the few bright spots. In India, seasonal disruptions and oversupply kept prices under pressure despite a partial recovery later in the year.

Global scrap prices experienced a phased recovery in 2025, rebounding in the first quarter, softening mid-year, and improving modestly toward year-end as mills rebuilt inventories. The stainless steel market also remained under pressure, with the CRU stainless steel index declining from around 147 at the start of the year to approximately 141 by December, reflecting weak end-user demand and high inventories in Asia.

Looking ahead to 2026, trade policy developments, energy price volatility, scrap availability and uncertainty surrounding Chinese production policies are expected to remain key risk factors influencing raw material markets.