The U.S. ferrous scrap market anticipates price increases. Processors expect a $20 per ton rise for January 2025. Steel mills need to restock inventories. Winter weather disrupts scrap generation. Processors withhold tonnage in anticipation of higher bids. Buyers adjust positions as scrap demand intensifies.
Winter Weather Disrupts Scrap Generation and Transportation
Two winter storms complicate scrap supply. The first storm disrupted traffic and recycling collections. This occurred from Kansas to Maryland. The second storm impacts scrap collection and trucking. It affects parts of the South, including Arkansas and Tennessee. Transportation infrastructure disruption tightens scrap supply. Colder temperatures and holidays reduce demolition and construction activity.
Domestic Steel Demand and Reduced Steel Production Drive Scrap Needs
Domestic steel mills rebuild scrap inventories. Steel production dipped. AISI data shows a 2.5% decline in U.S. steel output in 2024. This heightened demand for scrap. Steel mills secure more scrap material. This stabilizes operations and pushes prices up.
Limited Overseas Demand Fails to Offset Domestic Trends
Overseas scrap market does not contribute to price increases. HMS shipments from U.S. ports trade at lower prices. January HMS prices are $315 per ton in New York. Prices are $306 per ton in Los Angeles. Overseas scrap pricing trends downward. Labor disputes at U.S. ports do not exert upward pressure.
Conclusion
U.S. ferrous scrap market prices increase in January 2025. Tight supply, winter weather, and domestic demand drive this. Steel mills replenish inventories. The overseas market remains weak. Prices rise by $20 per ton in some regions. Scrap collectors may withhold material. This further tightens the market.
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