Analysis
February 5, 2026
US scrap market mostly settles up $20-30 for February
Written by Stephen Miller
The US domestic scrap market is largely settled on February pricing. Despite poor weather conditions that have been wreaking havoc on scrap flows and deliveries to consumers, the pricing initially agreed between dealers and steelmakers has been fairly conservative. Sources have reported to SMU there are logistical problems with trucking and barge shipments, and it remains to be seen if these scrap prices can bring out enough scrap to satisfy relatively heavy demand.
Several sources across districts report February prices are generally up $30 per gross ton (gt) across the board compared with January tags. Some buyers dipped their toes into the market at only up $20/gt. This was quite surprising since the scrap industry has been facing the worst weather conditions in several years. Most dealers ignored the slight, countered with a plus $30 offer, and concluded.
One mill source in the Central region told SMU they realized shredded scrap was in short supply due to the weather conditions. However, they were able to limit pricing to up $30/gt after analyzing the export price of shredded from the US East Coast. It indicated a relatively large spread between the domestic price and what exporters could expect to receive by shipping cargoes offshore. They felt comfortable with a $30/gt increase as a result.
We spoke with an executive in the Southern region who told us all but one steelmaker has paid up $30/gt for all grades of scrap, with the exception of 5-foot P&S. That grade rose only $20/gt as mills implied their preference for shredded. The lone mill that has not agreed to the $30 increase is the largest buyer. Our source said this mill is losing tonnages as dealers are flocking to other buyers paying the price. It is unclear what price this buyer will accept, but most suppliers are not waiting.
In the Chicago district, integrated mills have little appetite for scrap this month. A scrap industry veteran told SMU he heard these mills plan to use hot-briquetted iron (HBI) in their BOFs. The trade found this a bit unusual. However, it would make the area’s EAF scrap procurement somewhat easier.
