What is the outlook for the US ferrous scrap market?
The US ferrous scrap market remains bullish in February, with the Trend Indicator rising to 69.5, reflecting strong expectations of price increases. This marks a continuation of January’s upward trend, as scrap prices are forecasted to rise 3.2% month-over-month. The key driver remains lower supply, with inventory levels at 49.0, indicating tight availability relative to demand.
Read on for some highlights from our US ferrous scrap market survey for February or click here to download your copy of the full US scrap trends outlook.
Supply constraints drive market strength
Market sentiment remains divided across participants. Buyers are less aggressive, reflected in their Trend Indicator of 63.75, while brokers (75.0) and sellers (69.7) anticipate firmer pricing.
The tight scrap flows, exacerbated by seasonal weather conditions and logistical slowdowns, are keeping mills struggling to secure sufficient tonnage.
Mills are hungry for scrap, but inbound flows are slow to start the year
Survey participant
All market sides appear moderately aligned
Market sentiment remains divided across participants. Buyers are less aggressive, reflected in their Trend Indicator of 63.75, while brokers (75.0) and sellers (69.7) anticipate firmer pricing. The tight scrap flows, exacerbated by seasonal weather conditions and logistical slowdowns, are keeping mills struggling to secure sufficient tonnage.
Export demand remains a key factor to watch, though domestic consumption is currently the primary force behind price support. Scrap yards continue to see weak intake levels, reinforcing the expectation that supply constraints will persist into March. Mills remain in a restocking phase, and any further disruptions–such as continued winter delays or unexpected demand spikes–could push prices even higher.
With market consensus aligning around tightening supply as the primary factor, price stability remains uncertain. However, upward momentum appears set to continue.
