 |
| U.S. recycled steel prices |
U.S. recycled steel prices continue holding near the upper range of this decade, driven by strong domestic demand and constrained international supply. Early March reports from Davis Index and Kallanish Commodities indicate firm pricing for both finished steel and scrap. Meanwhile, U.S. electric arc furnace (EAF) capacity utilization reached 77.2 percent through February 2026, reflecting a 5 percent production increase versus the same period last year.
Domestic Market Trends and Production Dynamics
Domestic recycled steel demand remains robust, supported by active U.S. mills despite intermittent winter disruptions. Severe weather initially slowed scrap movement, but March buying activity has maintained momentum. The American Iron and Steel Institute (AISI) reports that furnace output surpassed 15 million tons in the first two months of 2026. As a result, suppliers and generators of recycled steel continue enjoying higher prices while mills optimize scrap consumption to manage production costs.
Global Export Risks and Indian Demand
Internationally, U.S. recycled steel exports face geopolitical risks affecting supply routes. Conflict in the Red Sea region threatens deliveries from the Gulf, prompting Indian buyers to consider West Coast shipments. EY analysis confirms India’s structural scrap shortage due to young steel stock and limited organized recycling, reinforcing reliance on imported recycled steel. Meanwhile, Turkish mills continue securing European and North American scrap to support semi-finished steel production, mitigating regional bottlenecks.
ScrapInsight Commentary
U.S. recycled steel prices remain resilient, reflecting tight domestic supply and growing Indian import demand. Geopolitical risks in the Middle East may elevate export premiums and reshape global scrap flows. Strategic alignment with green steel and decarbonization initiatives will influence pricing and sourcing decisions in 2026.
