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| Recycled Steel |
The US recycled steel scrap price decline April 2026 marks a notable shift in the ferrous scrap market. The US recycled steel scrap price decline April 2026 reflects weaker obsolete grades despite steady mill demand. Meanwhile, RMDAS data confirms sharper losses in shredded and HMS grades across the United States.
Market Drivers Behind US Recycled Steel Scrap Price Decline April 2026
The US recycled steel scrap price decline April 2026 is driven primarily by obsolete grade weakness. RMDAS data shows $15–$20 per ton reductions in late March and early April. No. 2 shredded scrap fell by $17 per ton. No. 1 heavy melting steel dropped by $21 per ton. The average HMS price reached $387 per ton. However, prompt industrial scrap remained stable during the same period.
Domestic steel demand did not collapse during this phase. However, pricing diverged from consumption trends. The American Iron and Steel Institute reported 1.848 million tons of weekly production. This represents a 9.7% year-on-year increase. Meanwhile, capacity utilization reached 80.0%. Therefore, mills continued operating at relatively strong levels despite weaker scrap pricing.
Supply Expansion and Export Pressure Deepen the US Recycled Steel Scrap Price Decline April 2026
The US recycled steel scrap price decline April 2026 also reflects improving scrap supply conditions. Severe winter disruptions eased across the United States. As a result, demolition and construction activity recovered. This increased obsolete scrap inflows into processing yards. However, stronger supply pressured benchmark grades lower.
Export markets further reinforced downward pricing pressure. U.S. ferrous scrap exports fell 16% year-on-year in 2025. Total volume reached 12.1 million metric tons. This marked the lowest level in over two decades. Turkey, Mexico, Bangladesh, Taiwan, and India all recorded double-digit declines. In contrast, geopolitical tensions and shipping disruptions added volatility to Asian demand routes.
Global Steel Cycle and Producer Behavior
EAF steelmakers maintained active pricing strategies during the period. Nucor, Gerdau, and Steel Dynamics continued adjusting finished steel prices upward. However, scrap did not follow the same trajectory. Mills also reported short maintenance outages between two and seven days. Therefore, operational disruptions had limited market impact.
Meanwhile, traders questioned the softness in scrap pricing despite steady demand. Market sentiment reflected uncertainty over historical price spreads. However, spot dynamics continued to override legacy pricing structures. As a result, the US recycled steel scrap price decline April 2026 highlights a more flexible and responsive pricing environment.
ScrapInsight Commentary
The current correction suggests a supply-led adjustment rather than demand destruction. However, persistent export weakness may cap upside momentum for obsolete grades. If global shipping disruptions intensify, price volatility could return sharply in Q2 2026. Market participants should closely monitor HMS–prime spreads for early directional signals.
