U.S. Recycled Steel Prices Rise Amid Supply Disruptions
The U.S. recycled steel market saw renewed price increases in December after months of subdued activity. Severe weather across several states caused construction slowdowns and material flow interruptions, creating bottlenecks. As a result, U.S. mills raised bids, with prime and prompt grades up $10 per ton. Structural, shredded, and heavy melting steel (HMS) grades gained $20 per ton compared with November.
Electric arc furnace (EAF) mills leveraged rising domestic steel prices to maintain margins despite higher scrap costs. Meanwhile, processors and shippers gained confidence to negotiate better prices. Industry reports suggest that domestic supply constraints combined with stronger export interest are driving ferrous scrap value upward as the year closes.
Global Factors Driving Recycled Steel Market Imbalances
International markets also influenced U.S. scrap dynamics. Exports to Turkey surged, with HMS cargo prices rising from $305 per metric ton in early November to $331.25 by mid-December. European and Mexican measures, alongside China’s new export quota system starting January 2026, may reduce steel exports, tightening global supply.
China’s steel output dropped sharply in November 2025, producing 69.9 million metric tons, down 10.8% from November 2024. This decline, coupled with oversupply earlier in the year and policy changes, signals potential market volatility for steelmakers and recyclers worldwide.
SuperMetalPrice Commentary:
The late-2025 spike in recycled steel prices highlights how weather, supply bottlenecks, and international policy interact to shape market dynamics. U.S. scrap processors and EAF mills face a balancing act between domestic cost pressures and global demand shifts. Strategic monitoring of China’s quota system and European trade measures will be critical for predicting early 2026 price trends.
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