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| U.S. ferrous scrap |
Winter Weather, Export Demand, and Price Dynamics
U.S. ferrous scrap supply has shown signs of peaking, easing upward pressure on recycled steel prices. However, recent months saw significant price rises driven by limited inventories and high electric arc furnace (EAF) utilization. California-based SA Recycling CEO George Adams reports that mills were willing to pay elevated scrap prices to maintain new steel momentum. Meanwhile, winter storms intermittently closed U.S. scrap yards as far south as Texas, restricting obsolete steel intake. As a result, mills faced tighter lead times, sustaining temporary price increases.
Export Trends and Regional Demand Impacts
Export demand influenced U.S. ferrous scrap supply dynamics, particularly from Turkey and South Asia. Adams notes export orders continued rising slowly despite domestic price constraints. In Southeast Asia, countries such as Thailand, Vietnam, Indonesia, and Malaysia maintained stable consumption, with alternative materials limiting increased recycled steel imports. Conversely, India and Bangladesh showed moderate growth, with India importing 7.99 million metric tons of recycled steel in 2025, reflecting steady construction and automotive demand. This contrast highlights regional variations affecting U.S. scrap flows.
Outlook for Scrap Availability and Market Adjustment
The thawing winter is expected to improve scrap generation and yard intake, potentially easing prices in the second quarter. Imported new steel offers more competitive pricing, pressuring domestic recycled steel. As supply improves, mills may moderate purchases, balancing domestic production and exports. Therefore, U.S. ferrous scrap supply may stabilize, reducing volatility while supporting EAF mill operations. Analysts anticipate market adjustment without abrupt price corrections, contingent on weather and international demand.
ScrapInsight Commentary
The U.S. ferrous scrap market shows a transition from tight supply to stabilization. Improved yard intake and competitive imports may temper domestic price rises. Policymakers and recyclers should monitor winter recovery and regional export demand to guide sustainable pricing and circular economy strategies.
