Product
Detroit enters February scrap market up $40/gt on prime, shredded
Written by Stephen Miller
February 6, 2025
After the tariffs threat to Canada and Mexico subsided earlier this week, the ferrous scrap market started to form for February shipment, with prices jumping from January.
A major buyer in the Detroit district entered the market with the price for #1 busheling up $40 per gross ton (gt) over prices January. Shredded and other obsolete grades rose $40/gt.
Recall that the tariff implementation received a commutation rather than a full pardon from President Trump over the weekend.
Both Mexico and Canada offered up enough proactively on immigration and drug enforcement to earn a stay of execution.
It is only 30 days, but most players do not think tariffs will rear their heads again that soon. It remains to be seen if 10% tariffs on China will be active for very long.
The general question is whether an increase of $20/gt was enough to draw out the necessary tons in a scrap-short, underpriced, and logistically challenged mid-winter marketplace.
There are several organizations predicting an increase of $30-50/gt. Meanwhile, a few steelmakers are saying they would rather cut back production than pay more than up $20 for steel scrap.
Now that the initial bids have been offered, it will be interesting to see if these healthy price jumps permeate throughout the other steelmaking districts.
Stephen Miller
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