Category: Raw Materials

US scrap prices declined in April for all the grades tracked by SMU amid tariff uncertainty, according to market sources.

The imposition of reciprocal tariffs by President Trump as explained on Wednesday afternoon has rattled virtually every market. This policy has some advantages for the steelmaking sector, but there may be some disadvantages that were not considered, especially for the EAF producers of flat-rolled.

Last week, much attention was focused on President Trump’s “Liberation Day” tariffs and rightly so. They have thrown a big wrench into the market-reading business. Whether you are for them or against them, the potential outcomes are hazy, at best. Maybe we should not forget the basics, tariffs concerns notwithstanding. The basics of this ferrous […]

Scrap buyers sound off on prices, demand, etc., in SMU's monthly scrap survey.

MetalX Founder and CEO Danny Rifkin - born in 1954 - died on April 1, surrounded by family.

The price of pig iron for the US market remains firm despite a potential drop in domestic ferrous scrap prices going into April.

The US ferrous scrap market rise this year is showing signs of slowing down as US steelmakers adjust production in line with slower automotive production and sales. But President Trump's announcement of 25% auto tariffs could change things very fast.

The export situation from the US East Coast was interrupted last week after a political event in Turkey.

The US scrap market is in for another unpredictable ride going into April. Questionable scrap flows, extended winter weather, and implications of tariffs on steel and scrap continue to have an impact.

The HRC vs. prime scrap spread increased again in March.

Ferrous scrap prices rose across the board in March as the market adapted to short supply and the volatile tariff situation, sources told SMU.

While overall steel demand remains weak in the near term, there are reasons to expect metallurgical coal prices will increase over the course of the year, Ramaco says.

The companies said Thursday that Radius shareholders will receive $30 per share in cash upon the deal’s closing, which is expected in the second half of this year.

“The next months are going to be good ones for pig iron producers," according to one source.

After an unusually long period of waiting for the March scrap market settlements, several mills are now actively buying ferrous scrap. And it looks like prices are ticking up.

Domestic shredded scrap has experienced a renaissance in pricing since January. And that increase had caused traditional exporters to ship their material to domestic users instead of overseas. But with recent changes, this cycle may end with the resurgence of export demand and continued foreign exchange fluctuations.

The situation on ferrous scrap has cleared up with the pause of the implementation of Canadian and Mexican blanket tariffs.

In the final week of February, SMU polled steel and scrap executives to gather their insights on the current state of the scrap market as well as future projections.

We really don’t know yet what and how severe the impact will be. But we do know ferrous scrap will become more expensive in the US. And it will be less expensive for Canadian mills. The larger consequences will be felt on the Canadian front. Even so, in the Southwest, the tariffs on Mexico will lower prices for Mexican scrap and might limit normal flows across the border.

These tariffs would significantly increase costs for American manufacturers that rely on Canadian metals. They would also disrupt supply chains and weaken economic ties that have benefited both nations for decades.

Input costs have been driven higher by tighter supplies and restricted flows after a tough winter. Could rising demand from mills fuel an extended rally into Q2? Shredder feed has been strained as shredders try to fill backlogs. And shredded prices could jump by $50 per gross ton (gt) this month, some suggest. It's a similar story with prime grades. That's because industrial generation is down, and hot-rolled coil production is picking up.

The main impact of tariffs on scrap prices would be felt in Northern states - and especially among those along the Canadian border. Many steelmakers in this area receive a substantial portion of their monthly scrap charge from Canadian processors. Much of it is prime scrap used by hot-rolled (HR) coil producers.

Buyers are optimistic for a strong scrap market in March, driven by limited scrap inflows from severe weather disruptions and increasing mill demand.

SMU's Stephen Miller provides an update on the raw materials sector.

An update on the US scrap export market.

There has been considerable upward movement in the US prices paid for future shipment of Brazilian-produced pig iron over the last week. 

The CRU Metallics Price Indicator (CRUmpi) rose by 5.0% m/m in February to 293.7, a five-month high. Scrap prices increased in different degrees this month, reflecting the confidence level in the steel market across different regions. While US scrap prices rose sharply m/m due to limited availability, those in Europe and Asia had only small […]

The ferrous scrap market in the US and Canada is trying to find its way through difficulties that could well determine its direction over the next several months.

The price spread between hot-rolled coil (HRC) and prime scrap widened in February ahead of the implementation of President Trump’s tariffs on steel.

The February scrap market has settled higher on all grades SMU covers.