US scrap market to end the year firm
Release Date:
2025-12-16
The US scrap market is ending the year on a strong note despite internal divergence, Kallanish observes.
Seasonal tightness, weather-related disruptions, a supportive export backdrop, and sustained mill buying interest, particularly from mill-owned shredders, mean obsolete scrap will enter January on a strong footing.
These dynamics are underpinning discussions for price increases of $20-40/gross ton, especially in Southern markets. Prime grades are expected to trade modestly higher into early January, with upside increasingly dependent on the persistence of obsolete strength.
Finished steel markets continue to provide stability and support. Hot rolled coil prices remain near recent highs, while long products also remain firm, with domestic rebar prices holding close to multi-year highs. Import pressure is non-existent.
Export markets remain supportive overall, led by the US East Coast.
On the US West Coast, buying activity from Taiwan remains subdued, as most consumers adopt a cautious wait-and-see approach amid persistently high international raw material costs, slow construction progress, and weak downstream demand. Containerised HMS 1&2 80:20 from the US is assessed mostly at $300–305/t cfr, with bids largely around $295/t cfr, despite market rumours suggesting bids have edged up to $298/t cfr due to limited US supply during the holiday period. Meanwhile, Taiwan’s Feng Hsin left both scrap and rebar prices unchanged again this week.
On the East Coast, sentiment recovered last week following a U.S.-origin HMS 1&2 80:20 sale at $369.5/t cfr. Turkish mills, which had been pushing for lower scrap values, failed to secure target levels amid suppliers’ firm stance. In the wake of the deal, suppliers raised price targets above $370/t cfr, with many stepping back from the market.
From: Kallanish
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