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| US EAF mills |
U.S. EAF Sector Exhibits High Activity
US EAF mills are running strong this December, reflecting robust recycled steel demand. Meanwhile, furnace heat mapping by Navigate Commodities shows capacity utilization exceeding 82.5%. November rebounded from October’s trough, and December started from a higher base, suggesting further strength. Holiday slowdowns may occur, yet January 2026 is expected to sustain high production rates.
Recycled Steel Prices Poised to Rise
Tight secondary scrap supplies and winter weather are slowing collection and trucking, supporting rising recycled steel prices. Navigate Commodities anticipates January 2026 per-ton purchase settlements rising $20–$40. Elevated hot-rolled coil (HRC) prices further encourage recyclers to maintain shred, plate, and structural scrap pricing. Timing sales into active melt periods maximizes margin.
Strategic Recommendations for Recyclers and Mills
Recyclers should lock logistics early to mitigate weather risks, while mills should pre-secure scrap and align maintenance with quieter periods. Meanwhile, daily heat mapping allows participants to optimize spreads and hedge effectively. Overall, strategic planning around capacity utilization and supply disruptions enhances both profitability and operational efficiency.
ScrapInsight Commentary
US EAF mills’ high utilization indicates robust domestic steel recycling demand. Tight scrap supply and weather disruptions may elevate prices in early 2026. Strategic logistics and timing of sales are critical for maximizing margins.
