The global steel abrasives industry is highly sensitive to fluctuations in raw material costs, energy tariffs, currency exchange rates, and freight conditions. To support distributors, end users, and industry partners, Biz-Harmony publishes a monthly market update. This report summarizes the August 2025 market developments, highlighting key data and trends that shaped procurement conditions.
In August 2025, scrap steel and electricity prices remained stable, the RMB strengthened against the USD, and Asia–US freight rates declined significantly, providing a favorable procurement environment for steel abrasives buyers.
While many variables affect the final landed cost of abrasives, understanding these drivers helps buyers make better-timed decisions and maintain competitive supply chains.
Table of Contents
Raw Materials – Scrap Steel
China’s domestic scrap steel prices in August ranged between RMB 2,620–2,700 per ton, showing a mild +1.5% month-on-month increase. European scrap prices held steady around €350–360 per ton, while Turkish imports of HMS 1/2 (80:20) were quoted at US$420–430/ton CFR, lifting billet prices regionally.
This data confirms that base material costs remain stable but firm, with little room for near-term declines.
Electricity Costs – Industrial Tariffs
For producers, energy is critical to melting and double-quenching processes.
- China: Industrial electricity tariffs averaged RMB 0.82–0.88/kWh, unchanged from July.
- Europe: Electricity costs remained 30–40% higher than pre-2022 levels, limiting competitiveness.
- USA: Slight easing in gas prices, but minimal effect on abrasives.
Chinese suppliers therefore retained a clear cost advantage compared with Western peers.
Exchange Rates – RMB vs USD
Currency movements had a significant impact in August:
- USD/CNY monthly average: 7.1745
- Highest (weakest RMB): 7.2118
- Lowest (strongest RMB): 7.1308
Direction: USD/CNY moved down from ~7.21 to ~7.13, meaning the RMB strengthened, enhancing export competitiveness and stabilizing FOB offers despite higher raw material costs.
Freight & Logistics – Ocean Shipping
Freight markets showed regional divergence:
- Asia–US routes: Rates declined sharply, with the West Coast down ~58% and East Coast down ~46% since June, driven by overcapacity and tariff uncertainty (Reuters).
- Asia–Europe: Container rates remained stable at US$2,100–2,300/FEU, reflecting steady demand.
- Asia–Southeast Asia: Short-haul shipments stayed cost-efficient.
Overall, logistics costs eased, especially for buyers on U.S. routes.
Market Dynamics – Supply, Demand & Pricing
- Demand: Shipbuilding, automotive, and construction coatings maintained stable procurement. Stainless steel shot demand stayed strong in Southeast Asia.
- Supply: Chinese producers operated at 75–80% utilization, ensuring consistent lead times.
- Pricing: Export prices for steel shot (S330–S660) and steel grit remained broadly unchanged, with adjustments within ±2%.
Key Takeaways
- Scrap Steel: RMB 2,620–2,700/t (China), stable with mild upward pressure.
- Electricity: RMB 0.82–0.88/kWh, steady, supporting China’s cost advantage.
- Currency: USD/CNY 7.21 → 7.13, RMB strengthening, export competitiveness improved.
- Freight: Asia–US rates down 46–58%, easing logistics costs.
Together, these factors created a favorable procurement environment for international buyers in August.
Conclusion
August 2025 confirmed stable supply, predictable costs, and stronger export competitiveness. As we enter September, this stability offers buyers an opportunity to secure supply at favorable conditions.