Analysis

February 19, 2026
US scrap prices increase in February, sources say
Written by Ethan Bernard
US ferrous scrap prices continued to rise in February, scrap sources told SMU.
SMU’s February scrap pricing stands at:
Analysis

February 19, 2026
Written by Ethan Bernard
US ferrous scrap prices continued to rise in February, scrap sources told SMU.
Open interest on CME Group’s hot-rolled (HR) coil futures contract typically builds throughout the month before dropping at the end of the month alongside contract settlement. Analysis in this report is based on an early month view of this open interest as well as prices. Notably, open interest for the HR coil contract is currently at a record high of 849,240 short tons (st) or 42,462 contracts. Open interest is up 13.8% m/m and 66% higher from the 511,480 st of open interest a year ago.
Ferrous scrap prices rose in November across all grades SMU tracks, though prices varied widely by region. “Marketwise, we saw disparate market movements between regions in the November trade, which wrapped up earlier this week,” one source told SMU. “It was a mixed bag, depending on the region and grade.”
Steel production has been suspended at a facility of Turkish steelmaker Habas following a deadly explosion, a source told SMU. SMU spoke with a source in Turkey who provided some further information after the incident at the mill in Aliaga, Turkey, occurred on Monday. (For background on the incident, click here.)
In this week's Market Chatter, steel buyers point to tight supply and steady demand as reasons sheet prices could keep rising, with many expecting HRC to reach $1,400-1,449 per short ton in two months. Views on when the rally will peak are mixed, with some anticipating further increases while others mention softening demand and political uncertainty. Respondents also disagree on tariffs' impact. They say reshoring is generating activity but has yet to translate consistently into demand.
The volume of finished steel that entered the US market eased 1% from August to September and held near a historically strong rate, according to SMU’s analysis of recently released Department of Commerce and American Iron and Steel Institute (AISI) data. Referred to as “apparent steel supply,” this measure is calculated by combining domestic mill shipments and finished US steel imports, then subtracting total US exports. It can be used as a proxy for domestic steel demand. Supply totaled 9.11 million short tons (st) in September, the fourth-highest rate recorded in the past four years. Supply has remained historically strong since May, when it surpassed the 9 million st mark for the first time in four years