May US prime scrap prices in the Ohio Valley are currently discussed $30/gt ($30/mt) less compared with April settles, on the heels of reduced demand for finished steel following continued reports that recent “panic buying” by steel end-users ahead of recent tariff announcements by the US Trump administration had abated, market insiders told SteelOrbis this week.
“April prime scrap was down $20/gt and we’re now seeing May off by $30/gt,” said one Midwest mill insider. “There is still plenty of prime scrap inventory available to mills, and possibly recent panic buys (of finished steel) are over.”
During the recent April buy cycle, scrap values dropped $20-40/gt ($20-41/mt) across all grades as a result of a reported peak in the price of finished steel and continued market uncertainty regarding the effects that tariffs will have on global steel demand. Insiders reported to SteelOrbis this week that domestic mills remain reluctant to continue to raise price offers for fear that higher pricing will encourage the entry of more imports.
This week, steelmaker Nucor reduced its Consumer Spot Price (CSP) for flat rolled coils following three weeks of stability to $930/nt ($1,025/mt), or $46.50/cwt., down from $935/nt ($1,031/mt), or $46.75/cwt., a week earlier. Since the beginning of 2025, the Nucor CSP price has risen by nearly 25 percent, while since its inception in April 2024, the CSP is up a more conservative 12 percent.
Based on a down $30/gt weekly market call for May, US Midwest busheling scrap could settle near $435-460/gt ($442-467/mt), or on average $448/gt ($455/mt), off from its April $465-490/gt ($472-498/mt) settlement. No consistent data is yet available for May shredded scrap, which settled $40/gt less during April negotiations to $415-420/gt ($422-427/mt). No call is available for HMS 1, which settled $30/gt less for April at $365-385/gt ($371-391/mt), though a recent decline in global export scrap pricing was expected to affect May domestic scrap values, insiders said. No solid May estimates are yet available for P&S grades, which settled $40/gt lower for April at $401-411/gt ($407-418/mt).
In the US Northeast, a May consensus is not yet available across all scrap grades, though some contacts hinted May declines could mirror those seen during April. April prime busheling scrap declined $20/gt to $410-430/gt ($417-437/mt), while shredded dipped $40/gt lower to $365-375/gt ($371-381/mt). HMS 1 closed April negotiations $30/gt less at $345-360/gt ($351-366/mt), while April P&S dropped a full $40/gt to $335-345/gt ($340-351/mt), market insiders told SteelOrbis.
A scrap insider recently summed up the current domestic US scrap market saying, “In my opinion the lower scrap numbers were a direct result of an increase in global economic uncertainty caused by tariffs, that made people hit the pause button at a time when things normally start to pick up for the year,” he said. “The thinking is that we might see more declines for May, but as we have seen recently, the situation with tariffs could change day to day.”
A week after announcing country-specific reciprocal tariffs, US President Trump paused the implementation of the levies for 90 days beginning April 9 on an extensive list of 60 nations that currently import products into the US. The pause allows the affected nations more time to negotiate their individual tariff levels with the US, Trump said. During the pause all tariffs will remain at a base rate of 10 percent, except China, who’s tariffs are now at a combined 145 percent, following Trumps reaction to recent retaliation by China. Current 25 percent tariffs on steel and aluminum remain in place, though market insiders said they expect Trump likely will offer concessions soon to the US’ two largest trading partners Canada and Mexico as part of a re-negotiated USMCA trade agreement.
