Analysis
June 4, 2026
Scrap market trading sideways for June
Written by Stephen Miller
The US domestic ferrous scrap market started to form on Thursday, with June activity showing signs of a sideways move compared to May levels.
This was generally predicted by most of the participants SMU has contacted over the last week. Several of the people contacted thought steelmakers would not want to disrupt the free flows of scrap, which has been achieved after a harsh winter and early spring. The steel market is extremely vibrant, and there are ample spreads between steel prices and scrap tags, especially in the flat-roll sector.
Detroit and Northwest Ohio mills have bought sideways from May price levels. Previously, there was some sentiment that shredded scrap could fall. However, buyers decided to keep prices where they were, especially with scrap flows back to sufficient levels.
A scrap trader in the Chicago area district informed SMU several mills in central and eastern Indiana have also entered the market at levels even with May. This occurred despite at least one of them issuing cancelation notices for unshipped May orders.
He indicated that, with scrap freely flowing (mainly obsolescent grades), not too many dealers are very much behind on shipments. This may not be true for busheling and other prime grades.
SMU has spoken to sellers who said some of their industrial accounts have been generating less scrap than usual. Some thought this could get worse over the summer with vacation schedules and automotive retooling.
In the South, most mills have also entered the market at sideways prices. One of the largest buyers is expected to buy at sideways prices after they considered dropping prices. “Now that other mills are buying sideways, I think they’re gonna come around and do the same thing,” a southern source said.
Heading back north, sources in Northern Ohio and Pittsburgh claim the scrap markets have moved sideways on all grades. These two districts saw #1 Busheling increase by $20 per gross ton (gt) in May. “Hearing no adjustments at this point,” one contact in the region said.
