Analysis
July 13, 2026
US scrap tags end up soft sideways in July
Written by Stephen Miller
The US scrap market has settled soft sideways this month, sources told SMU.
The first several buys were sideways for all grades, as previously reported. Most of these mills were located in the Northeast and Central districts.
As things unfolded, several of the largest EAF steelmakers saw a chance to lower prices of HMS, shredded, and plate and structural (P&S). This was partly due to weakness in the export markets off the US East and Gulf Coasts.
However, according to dealers in the Southeast region, the major reason these grades fell despite a vibrant melt rate, was due to a major buyer on the Lower Mississippi River cutting their monthly purchase by more than half. Sources told SMU it’s not that business was suffering, the mill was adjusting inventories amid port congestion.
As a result of this dislocation in the market, numerous mills in Alabama, Mississippi, South Carolina, and Arkansas were able to complete their buys with shredded and P&S at a $10-per-gross-ton (gt) discount from June levels, despite supplier objections. For HMS, our sources reported, several mills lowered prices by $10/gt while others maintained sideways prices. Any attempts to lower prime prices were short-lived and those grades sold off at sideways prices.
In Texas, the situation mirrored the Southeast. Shredded and HMS fell $10/gt while busheling went sideways. Machine shop turnings were also down by $10/gt, resisting further attempts to drop further. Again, the lack of exports from the Gulf Coast was a factor, according to a dealer source in the Houston area.
In Chicago and the Midwest, the prices on prime grades were unchanged. Several mills tried to take down obsolescent grades by $10/gt. However, they were only successful on the cut grades of #1 HMS and plate and structural. The dominant grade of shredded scrap resisted lower price tags and stayed sideways from June numbers.
SMU spoke with a veteran scrap trader in the Great Lakes region about the July market. He said he thought mills who lowered scrap prices made a poor decision to do so. He added that with mills running well and making tremendous profits, why would they want to interfere with the flow of their main ingredient for a mere $10 discount? That’s especially important when other costs their suppliers are facing are still elevated.
