U.S. Recycled Steel Prices Peak as Supply Squeeze Eases

U.S. Recycled Steel Prices Surge Amid Supply Constraints

Recycled steel prices in the United States soared over the past three months, driven by limited inventories and strong demand. George Adams, CEO of California-based SA Recycling, highlighted that electric arc furnace (EAF) mills are nearing full capacity. Mills accepted higher scrap prices to secure crucial recycled steel, pushing new steel prices upward. Winter weather further disrupted U.S. scrap supply, temporarily closing steel yards as far south as Texas.

Export demand also contributed to price growth. Adams noted that Turkish buyers maintained robust orders during winter supply tightness, supporting elevated price levels. However, as of March 2026, new steel prices stabilized slightly above $950 per ton, suggesting upward momentum may be slowing. Imported steel now offers more competitive pricing, adding pressure to domestic recycled steel markets.

Supply and Demand Trends in U.S. Recycled Steel

Supply conditions are poised to improve with warmer weather, boosting scrap generation and flows. Increased availability will likely ease pricing pressures heading into the second quarter. Fellow BIR contributor Michael Gaylard of Australia-based Sims Ltd. noted that Southeast Asian markets remain subdued, while India and Bangladesh sustained steady imports. India imported nearly 8 million metric tons of recycled steel in 2025, supporting local construction, infrastructure, and automotive sectors.

The U.S. recycled steel market faces a complex balance of domestic constraints, weather impacts, and international competition. Mills may need to adapt strategies to maintain margins as prices stabilize and imports become more attractive.

SuperMetalPrice Commentary:

The recent peak in U.S. recycled steel prices appears temporary. As scrap flows resume and imports compete, pricing may moderate in the coming months. Market participants should monitor winter recovery, EAF utilization, and international demand trends closely. Strategic sourcing of recycled steel now may yield cost advantages before the second-quarter supply rebound.