News from May 2025
According to Recycling Today, ferrous scrap prices in the U.S. dropped sharply in May, marking the second straight month of declines. According to the Raw Material Data Aggregation Service (RMDAS), steel mills were able to buy scrap for $30 to $50 per ton less compared to April. Over the past 60 days, some grades have fallen by as much as $94 per ton.
The steepest decline came in the North Midwest region, where No. 2 shredded scrap dropped from $469 per ton in March to just $375 in May. Prompt industrial scrap, which usually holds its value better, still saw a significant drop, from $499 to $445 per ton in the North Central/East. Across the board, average May pricing settled at $439 per ton for prompt scrap, $378 for shredded, and $332 for heavy melting steel (HMS).
This pricing slide is being driven by a combination of factors. Domestically, mills are seeing softer demand and are holding more negotiating power. Internationally, oversupply from Chinese steelmakers and an influx of low-cost Russian billet have reduced appetite for imported scrap in key markets like South Korea, Malaysia, and Vietnam. Meanwhile, scorching early summer heat is already affecting scrap flows in the U.S., with some regions reporting up to a 50 percent drop in inbound material.
Key Takeaways:
- Scrap yards are under pressure to adjust pricing and manage lower inflows.
- Mills are benefiting in the short term from lower input costs.
- Export demand is mixed. Weak in much of Asia, but steady in Bangladesh and parts of India.
- Prices may stabilize later this summer if scrap flows continue to tighten.
What This Means for Cozzi Recycling Customers:
For individual sellers, this may mean lower payouts at the scale. Customers bringing scrap to Cozzi Recycling may see reduced prices compared to earlier this spring, due to the broader market decline.
Stay Informed:
Cozzi Recycling is committed to transparency and keeping our customers up to date. If you’re planning to sell scrap in the coming weeks, give us a call before heading in. Market conditions are changing quickly, and we’re here to help you get the most value from your material.