US ferrous scrap prices for April delivery settled $20-40/gt ($20-41/mt) less this week during monthly April buy-cycle negotiations on the heels of a potential peak in the price of finished steel and considerable market jitters over the potential effects of tariffs, market insiders told SteelOrbis. Recent first quarter gains in finished steel pricing, they said, were encouraging the entry of more imports into the US, therefore mills were increasingly reluctant to continue to raise price offers.
And, following on previous reports of March scrap supply cancellations from mills, insiders said lower prices were “pretty much a given” as it appeared mill appetite for fresh scrap inventory was limited.
“This is the first up market we’ve seen in a year,” remarked one Midwest scrap broker. “It’s quite disappointing to give it all back already.”
Since January 1, SteelOrbis data shows Midwest shredded scrap prices had increased from on average $378/mt ($342/nt) to a high of $399.50/mt ($362/nt) at the end of March, a 5.7 percent rise. On April 1, 2024, Midwest shredded prices averaged $406.50/mt ($369/nt), up from a recent March scrap high of $439.50/mt ($399/nt) seen on April 10.
Insiders said late in the April supply negotiations that tariff-related actions by US President Trump was dominating the news, increasing uncertainty among steel market players.
“There still seems to be a lot of uncertainty out there, so bigger drops could be in store for April scrap,” another Midwest scrap insider said prior to the lower monthly settlements.
“In my opinion the lower scrap numbers were a direct result of an increase in economic uncertainty cause by tariffs, that made people hit the pause button at a time when things normally start to pick up for the year,” said another Midwest scrap insider. “The thinking is that we might see some more declines in May, as right now the market is seen at sideways. So, while the reciprocal tariffs are in place, as we have seen recently, the situation could change on a day-to-day basis.”
“Scrap went down $40 a ton, and I think its partly because of the tariff situation and continued market uncertainty,” said one Mexican steel insider. “Normally, during the second quarter, scrap goes down, but not my this much.”
This week, steelmaker Nucor kept its Consumer Spot Price (CSP) for flat rolled coils steady for a third straight week at $935/nt ($1,031/mt), or $46.75/cwt. Since the beginning of 2025, Nucor had increased its CSP price by 24.7 percent, while from its inception in April 2024 at $830/nt ($915/mt), the CSP was up a more conservative 12.7 percent.
In the end, US Midwest April busheling scrap settled on average $20/nt less than March settles at $465-490/nt ($472-498/mt), while April shredded scrap settled $40/nt less at $415-420/nt ($422-427/mt). April HMS 1 settled $30/nt less at $365-385/nt ($371-391/mt), while P&S grades settled $40/gt lower at $401-411/nt ($407-418/mt).
In the US Northeast, late market calls for April scrap found similar grade-based declines as the Midwest with April prime busheling scrap $20/nt less at $410-430/nt ($417-437/mt), shredded at $40/nt less to $365-375/nt ($371-381/mt), while HMS 1 closed April negotiations $30/nt less at $345-360/nt ($351-366/mt). April P&S dropped a full $40/nt to $335-345/nt ($340-351/mt), market insiders told SteelOrbis.