Analysis
April 9, 2026
April scrap market settles with shredded, obsolete down $10-20/gt and prime sideways
Written by Stephen Miller
The US scrap market has largely settled at prices most predicted in late March. The prevailing view then: shredded and other obsolete grades, like HMS, would drop $10-20 per gross ton (gt) despite higher transportation costs. And prime grades, like #1 busheling and bundles, would trade sideways thanks to better demand and static supply. This is essentially what has happened.
Detroit
In the Detroit district, several steelmakers have entered the market paying sideways prices for #1 busheling while dropping shredded and plate & structural (P&S) by $20/gt. The prevailing sentiment: obsolescent scrap flows have picked up now that springlike weather has arrived. And buyers felt there would be enough material available to meet their needs.
Northern Ohio and Pittsburgh
In the northern Ohio and Pittsburgh districts, a similar pattern developed. According to one source in Ohio, mills have bought prime grades sideways and shredded and cut grades down $20/gt from March levels. A trader in Pennsylvania said the same occurred in the Pittsburgh area, although the trade has voiced displeasure with the drop in obsolescent material given increased trucking freights stemming from higher fuel surcharges.
Southeast
Heading into the Southeast, the situation is just slightly different with regard to shredded scrap. SMU spoke with an executive with multiple locations throughout the region who said shredded scrap settled at prices down $10-20/gt. Several mills only dropped shredded prices by $10/gt rather than the $20/gt some mills insisted on. Steelmakers on the Mississippi River did drop $20/gt on shredded as did buyers in Texas, he said. However, other mills in the Southeast, one further from the Mississippi, went down only $10/gt. So, to summarize, the Southeast dropped $10-20/gt on shredded, was down $20/gt on P&S and HMS, and went sideways on busheling.
Chicago and the Midwest
In the Chicago and Midwest districts, the market followed the same general trend as Detroit and Ohio despite at least one EAF mill outage. Both shredded and cut grades dropped $20/gt while busheling stayed even. One source told SMU that a Canadian mill continues to pull scrap from Wisconsin locations and will continue to do so in the coming months. Another source said he is hearing dealer complaints about mills increasing steel prices and implementing fuel surcharges for delivery of their steel products while decreasing prices on scrap suppliers.
What happens in the months ahead?
Where are scrap price tags going into May and the summer months?
One source said it depends on several things. The first is whether the war in the Persian Gulf continues and whether commodities can be freely shipped from the region. If things don’t improve, it could negatively affect not only the US economy but also the global economy. However, if the situation improves, oil prices should normalize and export activity from the US could pick up on a sustained basis. The latter scenario would help US scrap prices maintain their prices levels.
Another player in the scrap trade thinks demand for scrap is going to increase in the coming months. He questioned whether supply would increase at the same pace – especially when it comes to prime industrial grades. As new steel capacity continues to ramp up this year, the demand for busheling and shredded will keep prices firm, he said.
