Analysis
July 9, 2026
US scrap tags settling mostly soft sideways in July
Written by Stephen Miller
The scrap market for July is partially settled except for the three largest scrap buyers in the country. While the markets in several districts including Cleveland, Detroit, Virginia, and Georgia have generally traded sideways on all grades, the buying has not settled at these levels for all mills.
The main stumbling block has been on the obsolescent grades, especially shredded scrap.
The larger buyers with multiple mill locations are offering to buy these secondary grades at prices down $10 per gross ton (gt) from June levels, while keeping prime grades sideways.
The rationale is a large generation of shredded is available this time of year. Coupled with weaker export activity, they feel they should take advantage of this situation. There is resistance, according to sources, in various locations, but it’s fading.
It is likely these buyers will be able to cover their needs at down money. The situation in the Southeast and River districts is obsolete grades will go down $10/gt with prime staying flat.
It is not official yet, but this is what a source there is saying. He said dealers in the region cannot place enough tonnages with other mills who previously came in sideways. So, they must accept down $10 or not sell.
He explained another reason for this retreat in pricing is a large steelmaker on the river reduced their July scrap purchase by 60% due to high inventory and extreme barge congestion at their loading facility.
“If it wasn’t for that, this market would be sideways,” he added.
The markets should reach final settlements Friday, according to most participants with whom we spoke.
In general, most districts in the North and Central areas bought sideways across the board with a few exceptions. In the Southern regions, primes grades are sideways while obsolete grades including P&S, HMS, and shredded will end up minus $10/gt from June levels. At press time, the Chicago and Midwest markets still were not settled.
