The prices for ferrous scrap in the United States experienced an upward shift in late December and early January, as mill buying transactions reflected an increase in value, particularly in the South and Midwest regions.

Steel Scrap Prices Rise in Key US Regions

Data from the Raw Material Data Aggregation Service (RMDAS) of MSA Inc. show that from December 21, 2024, to January 20, 2025, the price of No. 1 heavy melting steel (HMS) increased by $30 per ton in the South region. This was the largest price jump across the three benchmark scrap grades in the US. The increase in the South, where electric arc furnace (EAF) mills play a dominant role, marked a significant price rebound.

Along with the South, the North Midwest region also saw a rise in scrap prices. Both regions experienced increases of $23 to $30 per ton for key grades: No. 1 HMS, No. 2 shredded scrap, and prompt industrial composite busheling and factory bundles. The North Central East region, covering a wide geographical area from New England to parts of Ohio and Pennsylvania, experienced a more moderate price increase, with values climbing by $15 to $21 per ton in the same period.

The rebound in scrap prices in the South indicates that this region now holds the highest scrap prices in the US. Notably, mills in the South paid $378 per ton for No. 1 HMS during the 30-day period ending January 20, which was $27 per ton more than mills in the North Midwest.

Export Market Outlook

Despite the price increases in the domestic market, export activity for US scrap remains slower, particularly in regions with higher export dependency, such as the North Central East. Export buyers from countries like Turkey and the Indian subcontinent are still assessing US scrap prices before committing to larger purchases. Indian buyers have shown some willingness to pay a slightly higher price of about $2 per metric ton, while Turkish pricing for imported HMS scrap has remained steady at the start of January.

As of the third week in January, export-minded shippers were still waiting for more robust buying signals from international markets. Turkish mills, requiring material for February shipments, are expected to start securing cargoes soon, indicating a potential rise in demand for US scrap.