en.Wedoany.com Reported - In the second quarter of 2026, U.S. steel production showed an upward trend, but prices for ferrous scrap, the primary raw material for most steel mills, remained largely stable.
According to data from the American Iron and Steel Institute (AISI), U.S. raw steel production reached 1.877 million tons for the week ending June 6, 2026, with mill capacity utilization at 81.3%. Production in the same period of 2025 was 1.782 million tons, 5.3% lower than the weekly output in 2026. Compared to the last week of May this year, production in early June increased by 0.3% month-over-month. The U.S. domestic steel industry consumes approximately 80% of the country's recycled steel, demonstrating strong production momentum and pricing power.
Driven by demand, recycled steel producers such as Nucor Corp. and Gerdau raised product prices. North Carolina-based Nucor again increased spot prices for hot-rolled coil (HRC) steel by $10 per short ton from the previous week. On June 8, HRC prices stood at $1,115 per ton. Since January 27, 2026, Nucor has raised spot prices for this product weekly. Gerdau Long Steel North America increased prices for steel beams and other products by up to $80 per ton in the second week of June.
However, in contrast to rising finished steel prices, recycled steel prices stagnated. London-based information service Kallanish Commodities described ferrous scrap prices as remaining flat during domestic steel mills' June procurement period, while bids from Turkey, the largest buyer of U.S. recycled steel, showed a downward trend.
Atilla Widnell of satellite information service company Navigate Commodities explained that this market anomaly stems from globalization effects. His company's satellite tracking shows that European blast furnace and electric arc furnace (EAF) steel mills both reduced output in May, creating "ferrous scrap (excess) supply pressure" in the region. Despite EU trade measures to counter import competition, a surge in imports in early 2026 depressed steel production. Widnell wrote in a post that while the bottom of seaborne ferrous scrap prices for most of 2025 and 2026 was set by the red-hot U.S. steel market, the worsening supply-demand imbalance in Europe has begun to act as a "drag" on major U.S. indices. The supply of recycled steel generated in Europe exceeds consumption capacity, and the "fluctuating tonnage" appearing on the global market partly explains why U.S. scrap suppliers have failed to enjoy higher prices.
Data from the Raw Material Data Aggregation Service (RMDAS) of Pittsburgh-based MSA, covering domestic mill transactions from April 20 to May 19, 2026, confirms this trend. During this period, the national value of No. 1 heavy melting scrap (HMS) fell by $8 per ton, and No. 2 shredded scrap prices dropped by $2 per ton compared to the previous 30 days. Only the RMDAS prompt industrial composite grade (including No. 1 busheling, No. 1 bundles, and No. 1 factory bundles) saw a price increase, rising by $4 per ton.
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