Recycled steel prices in the United States saw a significant jump in January. Increases of $20 per ton or more were observed in several regional markets. Stronger bids from domestic mills drove the price surge. Mills focused on rebuilding inventories and faced weather-related disruptions in scrap collection and transportation.
Regional Price Variations and Market Dynamics
Price increases were seen across various benchmark grades. These included No. 1 heavy melting steel (HMS), shredded steel, and No. 1 busheling. Regions like Chicago, Cleveland, and Birmingham, Alabama, experienced higher bids in early January. Some regional markets saw even larger gains. For example, machine shop turnings in Cleveland increased by $30 per ton.
Prompt scrap prices followed the upward trend. Despite this, some processors hesitated to sell, anticipating even higher prices. Winter storms disrupted supply chains, further driving demand for inventory restocking.
Weather Impacts and Export Market Outlook
Winter storms across the US caused disruptions. These storms hindered ferrous scrap flows from key regions. Construction and demolition activities were also delayed, reducing scrap generation. The export market outlook was less optimistic. Bulk shipments of HMS from US ports traded lower than expected in early January. Prices at New York and Los Angeles ports were down from December. Despite these challenges, a tentative settlement between the International Longshoremen’s Association and the United States Maritime Alliance prevented further disruptions to outbound shipments.
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