Analysis
January 8, 2026
January scrap market partially settles up $20-30
Written by Stephen Miller
The formation of the domestic scrap market for January shipments is underway and only partially settled as of this article’s publication. The main point of contention is the price of #1 busheling and bundles. The prices of shredded scrap and other secondary grades have generally been agreed upon, though it remains to be seen whether they will bring out enough supply to meet mill demand.
Several mills and their internal scrap brokers have offered up $30 per gross ton for shredded, HMS, and P&S. These prices have been largely accepted by the trade in most regions. In some Midwestern districts, shredders want more than a $30/gt increase. What is unclear is whether dealers will sell their regular amounts at this price, given weather concerns, available shredder feed, and slower flows into their facilities. One of our sources has indicated the mills cannot buy enough shredded scrap. The trade will have to wait to determine if this is the case.
On prime grades, mills have entered the market, insisting on going up only $20/gt. They met initial resistance, but our sources have told us most suppliers have reluctantly submitted. These continuing discrepancies in recent price movements for shredded and busheling have now resulted in shredded being at the same level or higher than busheling in several districts. The market should fully settle before the weekend, barring any unusual events.
