Steel Scrap (Ferrous Metal): Why Prices Aren’t Moving Much

After a quick and smooth round of negotiations in June, many thought July would bring more of the same—and that’s exactly what happened. Even though scrap supply was low in May, more scrap came into the market in June. That extra supply meant sellers couldn’t push for higher prices in July.

  1. More scrap became available in June, which helped push prices down.
  2. Export Demand: Countries like Taiwan, Vietnam, India, Bangladesh, and Turkey usually buy a lot of scrap metal. But lately, their demand has been weak. They’re using cheaper alternatives like billets and DRI (direct reduced iron), and China is flooding the market with cheap steel, making it harder for them to justify buying scrap.
  3. U.S. Steel Mill Demand: Summer is typically a slow time. U.S. steel mills take maintenance breaks, auto factories change models, and a lot of workers go on vacation. Even though steel mill production has slightly increased, demand for some types of steel (like hot-rolled coil, or HRC) isn’t strong—especially at current high prices.

All of these things combined led to a quick July agreement, with prices staying the same for most types of scrap metal. The only exception was on the West Coast, where dealers selling high-quality scrap had to accept slightly lower prices.

Non-Ferrous Metals (Aluminum, Copper, Nickel): Tariffs and Summer Slowdowns

The uncertainty around tariffs is still causing trouble in the markets for aluminum and copper.

  • Copper: Copper prices are up slightly, but not as much as you’d expect. U.S. buyers had already stocked up in June, so there wasn’t much buying activity in July. Scrap copper prices rose a little, but not nearly as much as copper futures.
  • Aluminum: Aluminum prices on the global market jumped, but scrap aluminum prices only went up slightly. Domestic demand is down (as expected in summer), but strong interest from countries like India has helped support prices.
  • Nickel (used in stainless steel): Nickel prices barely moved last month, and demand for stainless steel scrap remains weak. However, prices are holding steady due to a limited supply of scrap.

Looking Ahead

The U.S. economy is still in a bit of a slowdown, but it’s proven pretty resilient overall. Scrap metal prices are expected to stay relatively flat for the next couple of months. Until we get a better idea of what’s happening with tariffs and international demand, don’t expect any big price jumps—up or down.

 

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