Ferrous Scrap
US scrap market slumps in 2024
Written by Stephen Miller
December 19, 2024
The US domestic ferrous scrap market had a rough 2024, despite optimism as the year started. In December 2023, market prices shot up after multiple months of retreat. At this point, many players in the trade thought prices would return to levels experienced in 2021-22.
Well, the opposite happened. Ferrous scrap prices declined going into January and continued on that trajectory for eight consecutive months. This mirrored the fall in prices for hot-rolled coil (HRC). Prices for scrap steadied in October and rose slightly in November. But in December, prices again continued their downward slog, as HRC showed little strength and mills tried to minimize scrap intake.
The prices for the three ferrous scrap products SMU tracks— busheling, HMS, and shredded scrap—all declined over the course of 2024. To check out the prices, you can look at our interactive pricing tool here.
Over the year we have seen a more pronounced drop in demand for the industrial-generated grades of #1 Busheling and #1 Bundles. The other two obsolescent grades did not decline as much on a percentage basis, despite their elasticity. Ironically, the prime grades have been largely regarded as the most in demand by the electric-arc furnace (EAF) flat-roll steelmakers. But in 2024, they actually demonstrated the weakest demand based upon their relative price erosion.
Several industry organizations are predicting a better year for steel in 2025. There will be additional melting capacity added this coming year as several new mills start production and others ramp up from starts in 2024. It should be interesting to see how demand for scrap will be affected as there will be many moving parts making up the 2025 steel and scrap markets. SMU will be following it!
Stephen Miller
Read more from Stephen MillerLatest in Ferrous Scrap
US scrap exports listless, echoing domestic mart
The ferrous scrap export market off the US East Coat and Gulf Coast has remained basically sideways over the last month. This mirrors the lack of movement in the US domestic market.
August scrap price direction unclear on ‘reciprocal’ tariff uncertainty
Most market players are hedging their forecasts until the tariffs on imported raw materials are settled. Even then, some are positing the August market will trade sideways.
August scrap outlook hazy on potential tariff impact
Divergent opinions emerge on August's scrap outlook.
CRU: Turkish scrap prices remain flat
Turkish scrap prices were unchanged week over week (w/w), with HMS and Shredded grades assessed at $340 and $355 per metric ton (mt) CFR, respectively.
Miller on Scrap: New US tariffs set to stir up scrap, pig iron markets
President Trump's threatened tariffs on Brazil, USMCA partners, and Europe could shake up the scrap and pig iron markets in August.