During the first week of each month, referred to as “The Buy,” our team negotiates with steel mills to secure purchase orders for all ferrous grades. The remaining three weeks are then focused on fulfilling these orders. Various factors, including supply and demand, mill outages, export demand, weather conditions, and the availability of freight and cost, impact these negotiations. At BL Duke, we prioritize shipping point pricing and take full advantage of our ability to ship materials via truck, rail, and barge.

As we move into February, the domestic ferrous scrap market continues to strengthen, carrying forward the momentum established at the start of the year. Bullish sentiment is building, with prices expected to move upwards this month, supported by weather-driven supply tightness, firm steel pricing, and improving export demand as 2026 takes shape.

Winter Weather – Weather remains the key driver of tight supply, slowing inbound scrap flows across multiple regions and tightening availability. Importantly, there have been no disruptions on the river, allowing logistics to remain steady even as material availability tightens elsewhere.

Export Activity – Export demand is improving and continues to pull material out of the domestic market.

Hot-Rolled Coil (HRC) Prices – HRC prices are holding in the mid-$900s per short ton, reinforcing confidence in flat-rolled steel demand and supporting scrap values.

Futures Market Strength – Futures markets are trending upward, signaling positive sentiment and expectations for stability to modest upside in the near term.

Tariff Developments – The next potential date for a Supreme Court decision related to tariffs is February 20th, which remains a key item on the market’s radar.

All signs point to February trading on a firm, supported basis, keeping the market on solid ground as 2026 continues.

Want to know how this outlook impacts your scrap program?

Contact the BL Duke team to schedule a meeting and review your recycling strategy.