Steel Scrap Market Tightens as Tariffs Keep Supply Low, Prices Rise
The latest SMU scrap survey shows prime-grade scrap prices falling from $447.50/gt in February to $400/gt in December, yet supply remains tight and tariffs on pig iron and DRI are expected to push prices higher. Respondents report stable demand but diminishing supply, especially during the holiday season, while export demand in Turkey could firm up U.S. prices if volumes increase. Overall, the market is supply‑driven with price pressure likely to persist into 2026.
The latest SMU scrap survey shows prime-grade scrap prices falling from $447.50/gt in February to $400/gt in December, yet supply remains tight and tariffs on pig iron and DRI are expected to push prices higher. Respondents report stable demand but diminishing supply, especially during the holiday season, while export demand in Turkey could firm up U.S. prices if volumes increase. Overall, the market is supply‑driven with price pressure likely to persist into 2026.
Short‑term, U.S. steel scrap prices are likely to climb as supply constraints and tariff‑induced cost pressures tighten margins. Traders should monitor tariff developments and Turkish export activity, as these factors could further elevate scrap and finished‑steel prices over the next few months.