Recycled steel prices hold steady

Generators and shippers of recycled steel seem poised to continue receiving prices on the higher side of this decade’s trading range as the March buying period in the United States gets underway.

In the first week of March, Davis Index and Kallanish Commodities are reporting price increases for finished steel produced by some U.S. mills and firm or even strengthening scrap pricing in the U.S.

A review of the early and midwinter scrap market prepared by SA Recycling CEO George Adams for the Bureau of International Recycling indicates that a reduction in severe weather in the U.S. likely would stall recycled steel’s upward price momentum.

On the demand side, Adams predicts the capacity rate of electric arc furnace (EAF) mills in the U.S. appears to be reaching an apex, while he describes export order levels as being in the midst of a slow rise.

Since Adams submitted his remarks to BIR in late January, more severe winter weather hit the U.S., including in some of its largest population centers along the Atlantic Coast.

In the domestic steelmaking sector, the Washington-based American Iron and Steel Institute (AISI) portrays an industry that was active in the first two months of 2026.

According to AISI, U.S. furnace output through Feb. 28 surpassed 15 million tons, with mills operating at a capability utilization (capacity) rate of 77.2 percent. The volume figure represents a 5 percent increase from the approximately 14.3 million tons made in the first two months of 2025, when mills were operating at a 76.4 percent capacity rate.

On the export front, steelmaking and cargo shipping conditions in Turkey and India—the largest buyers of outbound American recycled steel—will be watched closely in the wake of attacks launched by Israel and the U.S. on Iran, followed by Iran’s vow to shut down ocean freight passage in the Strait of Hormuz leading to the Red Sea and Suez Canal.

Turkish mills should be able to continue receiving ferrous scrap shipments from Europe and North America.

Their concerns likely will focus on some finished steel shipments and the ability for rolling mills to receive steel slabs and billets. Those semifinished products can replace imported scrap as a raw material in the production of some Turkish rebar and finished steel.

Indian mills face the temporary loss of steady supplies of recycled steel from the United Arab Emirates and neighboring Gulf Cooperation Council scrap-surplus nations.

A recent analysis by a partner with global consulting firm EY concludes that India’s appetite for imported recycled steel will not subside anytime soon.

The early March report by Kapil Bansal, a partner focusing on energy transition and decarbonization at EY-Parthenon India, states, “India's domestic scrap generation is insufficient due to a relatively young steel stock and limited organized recycling. This creates a structural supply gap, making imports necessary to meet growing demand from scrap‑based steelmakers.”

If the Red Sea region remains a conflict zone, shippers on the U.S. West Coast could begin to gain favor with Indian buyers since that route avoids the Middle East bottleneck.

The market overall is poised to benefit from Indian steel industry strength and decarbonization, with the Brussels-based World Steel Association reporting the nation’s mills increased output by 10.5 percent this January compared with January 2025.