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| US scrap |
Bullish US Ferrous Scrap Prices Amid Tight Supply
The US ferrous scrap market remains bullish entering February 2026, driven by constrained inventories and winter disruptions.
January recorded a 6.6% price increase, while February forecasts suggest a 5.1% gain, reinforcing upward pressure.
As a result, market participants anticipate continued strength in pricing across major scrap grades despite logistical hurdles.
Winter Weather Impacts Midwest Scrap Logistics
Severe winter conditions significantly disrupt scrap collection and intake, particularly in the Midwest region.
Frozen roads, stalled flows, and limited obsolete grades hinder normal supply, exacerbating tight market conditions.
Meanwhile, logistics challenges create inventory shortages, supporting elevated market sentiment and price resilience.
Divergent Market Views Despite Price Support
Consensus on market direction remains weak with a Trend Indicator of 70, above long-term averages.
Sellers and brokers remain more bullish than buyers, reflecting persistent supply-driven price dynamics.
Unless intake improves, tight conditions are likely to sustain February and March pricing across ferrous scrap.
ScrapInsight Commentary
US ferrous scrap markets face sustained upward price pressure due to tight supply and winter disruptions.
Steel mills may face higher feedstock costs, reinforcing incentives for scrap recycling.
Policy and logistics improvements could moderate volatility, supporting smoother material flows in coming months.
