03/21/2025 20:52:17 UTC | Market Commentary
Author Fast Webs<.>, <.>

* Midwest buyers, sellers expect stable April scrap prices without tariffs
* Southeast scrap prices under pressure from improved spring supply

US ferrous scrap prices could remain flat in the Midwest if scrap imports are exempted from a 25% tariff currently scheduled for April 2, but were at moderate risk of a downturn in current conditions due to increased supply.
Platts assessed No. 1 busheling prices steady at $480/lt delivered Midwest and $475/lt delivered Southeast March 21. Shredded scrap prices were unchanged at $465 delivered Midwest and $460/lt delivered Southeast.
US President Donald Trump announced March 4 that all imports from Canada and Mexico, including ferrous scrap, would be subject to a 25% tariff, effectively ending those countries’ tariff exemptions under the US-Mexico-Canada trade agreement on national security grounds. On March 6, the tariffs were suspended until April 2 but could be assessed at any amount.
“We think steel mills will get scrap imports from Canada and Mexico excluded from tariffs,” a Midwest scrap dealer said. “Mills are saying scrap prices should be down in April as supply increases, but the Ohio Valley looks flat compared to demand, while Chicago will probably be soft sideways for most grades.”
Ferrous scrap prices in the Southeast could be under stronger downward pressure for April-delivered volumes amid a faster recovery in supply, the dealer said. “In the Southeast, there may not be enough demand out there as spring supply improves, so prices there could drop.”
A Midwest steelmaker said US scrap prices could be flat or lower in April, as long as a supply shock from import tariffs is avoided. “We need to see if tariffs are once again considered on scrap. Flows have definitely improved, so fundamentally I believe it will be a soft sideways move in April.”
Bellwether markets for US ferrous scrap exports and domestic flat-rolled steel also pointed toward stable domestic scrap pricing. Platts assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) at $380.50/mt CFR March 21, up 50 cents/mt from one week earlier. US Midwest hot-rolled coil was assessed at $945/st ex-works Indiana March 21, down $5/st from March 14.
Platts is part of S&P Global Commodity Insights.