June’s ferrous scrap market settled largely sideways, with mills bidding both prime and obsolete grades unchanged from May levels. Strong steel production and elevated capacity utilization continued to support demand, while logistical challenges, elevated freight costs, and concerns over heat-driven summer supply slowdowns encouraged mills to maintain pricing and protect inbound tonnage.
The result was a more balanced market environment. Strong domestic steel fundamentals offset improving seasonal scrap flows, allowing buyers and sellers to find common ground despite ongoing market uncertainty.
Chicago’s Ferrous Scrap Market
In Chicago, June pricing settled sideways as mills maintained May pricing levels for both prime and obsolete grades. Strong steel production and elevated capacity utilization continued to support scrap consumption, while logistical challenges and elevated freight costs influenced buying behavior. Concerns surrounding potential summer supply slowdowns due to extreme heat also contributed to mills holding pricing steady. Rather than risk lower inbound volumes during the peak summer months, many buyers opted to maintain pricing levels to ensure adequate scrap flows.
Prime Grades. Prime scrap remained supported by favorable steel market fundamentals. Strong mill utilization rates and elevated finished steel pricing continue to provide underlying support for busheling and bundle grades. Although the spread between scrap and finished steel remains historically attractive for mills, strong steel demand continues to support overall scrap consumption.
Domestic steel production remains healthy, and mills continue to benefit from favorable margins as HRC pricing remains elevated. These conditions have helped prevent downward pressure on prime grades despite improved scrap availability.
Obsolete Grades. Obsolete grades faced a more balanced environment during June. Improved weather conditions increased inbound scrap flows throughout the Midwest, adding supply to the market after several months of tighter availability.
At the same time, softer export demand limited opportunities for surplus material to move offshore. While export markets continue to provide support, they were not as aggressive as earlier in the spring. As a result, obsolete grades generally remained stable, supported by domestic demand but constrained by increased supply.
“Strong steel production continues to support scrap demand, but improved supply and ongoing logistics challenges are keeping the market balanced. Mills chose to hold pricing steady in June to protect tonnage and maintain a reliable flow of material as we move into the summer.”
Chicago’s Non-Ferrous Scrap Market
Aluminum. Aluminum prices continued to strengthen during May, supported by supply concerns in the Middle East, rising U.S. Midwest premiums, and improved manufacturing activity. Primary aluminum scrap grades benefited the most from higher LME pricing and stronger physical premiums, while secondary grades remained more measured. Overall, healthy domestic demand and tighter physical supply continue to support the aluminum market.
Stainless Steel. Stainless steel pricing remained relatively stable throughout May, with nickel declining modestly and limiting upside potential for stainless scrap values. Despite softer nickel prices, steady mill demand, improving manufacturing activity, and higher chromium and energy costs helped support the market. Unless nickel experiences a significant rally, stainless scrap prices are expected to remain stable to modestly stronger in the near term.
Copper. Copper remained one of the strongest and most volatile scrap markets, with COMEX prices reaching record highs during May. Ongoing uncertainty surrounding potential U.S. copper tariffs, shifting global inventories, and long-term demand from electrification, infrastructure, and data center growth continue to support pricing. Copper scrap values remain closely tied to COMEX movements, and elevated volatility is expected to persist as the market awaits further clarity on tariff policy.
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