Analysis
November 17, 2025
US scrap market picks up steam
Written by Stephen Miller
The US scrap market is showing some signs of strength in certain regions shortly after the November settlements finalized without detectable resistance.
SMU noted during its reporting as the November market started to settle, dealers may not sell their normal amount of scrap after the sideways move.
The reasons for this possible reaction could be they see future markets going higher. Another possible concern may be that scrap flows are slowing.
We also reported many dealers in November selling enough to last them through December. So, mills could be worried they may need more scrap than will be offered for December shipment, if they did not order enough in November.
It’s likely a combination of all three reasons. After all, it happens almost every winter.
SMU heard from a source in the Western Pennsylvania area who said mills in the Northern tier are interested in plate & structural (P&S) and are offering premiums of $10-15 per gross ton (gt) over the initial November prices. This grade has the tendency to become scarce during the winter months as demolition jobs slow down.
Two sources have indicated offers for shredded scrap have jumped $20/gt in the last several days especially in the Chicago district.
One source told SMU this is happening despite decent inventories of scrap at most mills since they have bought more scrap in recent months.
A Southeast source we spoke with said he has not heard any increased price offers in his area. He believes there is ample scrap to cover reduced demand by mills with shortened melt schedules during the holidays this month.
If these scattered reports are indeed indicating mills are projecting being in need of scrap amid a winter supply or any other issue, it will be difficult to make up ground by offering modest premiums.
Over the last three years, scrap prices rose substantially during this time of year after the market traded flat or down for at least six months prior.
In December 2023, mills increased busheling prices by $50/gt and still had to go higher in the aftermarket as dealers held out for more. We’ll have to see if history is a reliable harbinger of things to come over the next two months.
