Ferrous scrap market chatter this month

Every month, SMU polls participants in the ferrous scrap market on a variety of topics. These include prices, business conditions, and tariffs, among others.

With the Labor Day holiday, we received the results from this survey just after we published September pricing data. We reported shredded and HMS as flat, while busheling was up $10 per gross ton (gt) from August.

The vast majority of our respondents (72%) saw the market moving sideways this month for prime grades. Meanwhile, the remainder thought prices would be up in September.

Regarding whether the current scrap market was in balance right now, given supply and demand, a large majority of survey respondents thought it was at 65%.

One respondent commented: “Yes, but demand is building due to strong mill operating rates.”

Let’s take a look at what other participants were seeing on pricing, demand, and tariffs. We’ll post the slides, followed by a few comments from respondents.

Want to share your thoughts? Contact david.schollaert@crugroup.com to be included in future market questionnaires. (For Premium subscribers, the full results are available here.)

How popular are Trump’s tariffs?

“Has pushed up raw material costs.”

“Both positive and negative. In the short term, more positive than negative.”

“Pricing has increased and will be moved to customers.”

How is demand for ferrous scrap?

Of note, no respondents reported demand as declining vs 21% a month earlier. A respondent commented: “Stable currently but growing over the fourth quarter.”

Two months from now how do you see ferrous scrap pricing behaving?

“Over the next 60 days, roughly October and November 2026, I see US ferrous scrap as sideways-to-higher, with more upside risk than downside risk.”

“A lot depends on export activity.”

“With upward pressure.”

“Scrap market does seem to be in balance at these numbers.”

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.