Analysis
May 14, 2026
SMU scrap tags land sideways in May, slightly up on busheling
Written by Ethan Bernard
US scrap prices were mostly flat in May, with some upside on prime scrap, sources told SMU.
“Overall, the ferrous market is relatively balanced,” one source told SMU. “US demand is strong, export demand is firm and steady, and scrap flows are reasonably even week to week.”
Depending on the region, prime scrap prices were anywhere from sideways to up $20 per gross ton (gt) in May.
SMU’s May scrap pricing stands at:
- Busheling at $450-$475/gt, averaging $462.50/gt, up $2.50 from April.
- Shredded at $425-$440/gt, averaging $432.50/gt, even with April.
- HMS at $365-$385/gt, averaging $375/gt, down $2.50 from April.
The source noted scrap demand from the US domestic market reflects low levels of steel imports, high pig iron import prices, and more EAF capacity to make steel in the US compared to “any previous bull market run we’ve ever experienced.”
“These bullish factors help offset the global steel overcapacity we’ve been experiencing for over a decade now,” the source added.
A second source said demand is leveling off and scrap supply is more than ample. “Soft sideways in June.”
That seemed to be a consensus regarding the outlook for next month.
“I do not see the market moving all that much in either direction. I would call June sideways,” a third source said.
The first source echoed that sentiment but sees prices moving up in the coming months.
“My sense moving forward is that the market will continue to trade sideways, and that the next move, whenever that will be in June, July, or August will probably be higher, absent some bad news or change in one of the factors I mentioned above,” the first source said.
