Winter weather in the United States in January and February disrupted travel and significantly impacted ferrous scrap generation and transportation, which contributed to an increase in recycled steel prices. The cold weather and storms reduced scrap intake by up to 40% in some areas, after mills had already cut inventories in late 2024.
This shortage, coupled with modest restocking efforts in January, led to a $20 per ton price rise for shredded scrap by mid-February. Despite more disruptive weather in February, prices were expected to continue rising.
Additionally, American steel mills raised prices for products like hot-rolled coil and rebar, influenced by rising scrap costs and a 25% tariff on inbound steel. While some in the industry viewed tariffs as beneficial, others expressed concern about the uncertainty they create, particularly for business planning.
Overseas buyers, initially slow to react to the price increases, started making higher offers for U.S. scrap in mid-February. Analysts, referencing past tariff impacts from the Trump administration, predicted that U.S. steel prices could rise significantly in 2025, potentially leading to higher scrap prices for recyclers. However, the tariffs could also create more competition between U.S. mills and overseas buyers.
Reference
Taylor B. (2025) Winter supply hiccups spur ferrous price boost. Recycling Today. February 14, 2025.