Prices
October scrap market settles with bush down $20, shred down $10
Written by Stephen Miller
October 8, 2025
Steelmakers in the US have settled prices for scrap shipments for the month of October, according to market participants.
The market traded down after much negotiation with the larger scrap processors. But it dipped more modestly than some industry sources had predicted it would in September.
Most mills sought a drop of $20-40 per gross ton (gt) in busheling prices and a $20/gt dip for shredded and HMS. Despite efforts to buy cheaper, the busheling price settled at down only $20/gt. The trade did not contest down $20/gt because there seemed to be more busheling available given flat demand.
The biggest point of contention was the proposed lowering of shredded and #1 HMS. Many dealers did not want to sell at down money. Mills countered that they were justified in dropping shredded by at least $10/gt to keep a positive spread between busheling and shredded prices.
Recall that busheling fell $20/gt in September while shredded traded sideways. Busheling now holds as little as a $10/gt premium over shredded (which is technically a #2 grade of scrap).
As negotiations wore on, dealers accepted down $10/gt for shredded. But they were relieved that #1 HMS and other grades traded sideways.
There are a handful of mills that managed to buy P&S at down $10/gt. And some are still trying to do so. However, trading is essentially a “fait accompli.”
What remains unclear is whether dealers have sold their normal complement of scrap tonnage. They may have held back a bit as we approach the slower winter months.
October is usually a weak month for scrap. But this year, with the scrap market trading sideways on obsolescent grades for five consecutive months, it was difficult to justify a major decline.
And several sources told SMU they think the US scrap market has bottomed.
Stephen Miller
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