The scrap metal industry continues to face weak demand and ongoing tariff uncertainty. In Chicago, ferrous scrap prices fell for the second consecutive month. Stainless steel saw a modest bump in 300 series grades from restocking, aluminum prices edged lower, and copper remains highly volatile—spiking in late March before retreating on broader economic worries.
Chicago’s Ferrous Scrap Market
Chicago’s ferrous scrap market weakened further in May. Prime grades saw the smallest drop at $30 per gross ton, while cut grades, turnings, and shred fell by $40 per gross ton. The decline was fueled by sluggish demand both domestically and abroad, excess obsolete material, and continued tariff uncertainty.
“The reality is, there’s still no real demand from the mills. Until order books start to improve, we can expect continued pressure on scrap prices.” says Lou Plucinski, President.
Shredder prices are beginning to drop, and signs of a weakening scrap market are becoming more pronounced. Nucor’s recent decision to lower its Hot Rolled Coil (HRC) price to $910 per short ton—a $20 reduction—signals softening steel demand, while Cleveland-Cliffs’ move to points to further demand challenges. At the same time, domestic and export demand remain underwhelming, with slow mill order books dragging prices lower. The sharp devaluation of the Turkish lira has also limited buying power abroad, further reducing export activity and leaving more obsolete scrap in the U.S. market. Combined with uncertainty around new tariffs and potential trade retaliation, these pressures made it very difficult for prices to hold up this month.
Chicago’s Non-Ferrous Scrap Market
As May trading kicks off, stainless steel scrap prices have seen a modest uptick in 300 series grades, driven by restocking activity. However, the overall market remains sluggish, with expectations of a difficult summer ahead. Ongoing U.S. tariffs and trade policies continue to put pressure on export pricing, making the domestic market the more favorable option for stainless scrap. Demand remains weak, and the LME Nickel price has shown little to no movement in recent months.
In contrast, both primary and secondary aluminum scrap prices have edged down slightly due to oversupply, soft demand, and limited export opportunities amid ongoing trade uncertainty. Market activity across all aluminum scrap grades remains subdued, with few spot sale opportunities emerging.
The copper market has been highly volatile in recent weeks. After reaching a record high in late March on concerns surrounding U.S. tariffs, prices quickly fell into bear territory as broader economic concerns took hold. Recently, prices have rebounded as trade tensions eased and sentiment improved in China, the world’s largest copper consumer. However, ongoing volatility is expected to continue, with reciprocal tariffs still posing a risk to copper demand in the near term.
