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Ferrous Scrap

Scrap Steel Product page
Recycled steel — the dominant feedstock for the EAF route and the largest recycled material on Earth.

Where to find live Scrap prices

Primary sources only

TSM does not display real-time Scrap quotes on this page — instead, we link directly to the regulated exchanges and benchmark price-reporting agencies (PRAs) that produce the actual numbers. One True Source for All: where the data originates, that is where you should read it.

Exchange access is free for delayed prices on most LME/SHFE/CME pages; live tick-by-tick data and PRA assessments are paid subscriptions sold by the exchange or by Fastmarkets / Argus / S&P Global Platts directly. See TSM Sources methodology for the full source tiering.

About Ferrous Scrap

Editorial · sourced

What is ferrous scrap?

Ferrous scrap is steel and iron recovered from end-of-life products, manufacturing offcuts, demolition and home-scrap (re-melt scrap generated inside a steel mill itself). Standardised grades include heavy melting scrap (HMS 1 and HMS 2), shredded auto scrap, busheling (clean factory offcuts), plate-and-structural (P&S), and bundles. Steel is the most recycled material on Earth by mass — per USGS Mineral Commodity Summaries 2026 — Iron and Steel Scrap, the overall US recycling rate has been 80-90% over the past decade. Recycling rates by end-use: structural steel 97%, autos ~100%, appliances 78%, construction end-uses 74%, steel containers 62%.

How scrap is priced

The global seaborne benchmark is the LME Steel Scrap CFR Turkey (Platts) cash-settled futures contract — Turkey is the world's #1 scrap importer, and the Platts CFR Turkey HMS 1/2 80:20 assessment is the underlying. Domestic US prices use the AMM busheling Midwest assessment from Fastmarkets / American Metal Market, settled monthly between mills and brokers; CME also lists a busheling Midwest futures contract. Platts and Argus publish parallel European, Asian and Indian regional scrap assessments. Scrap value is the floor for EAF mill economics globally.

Where scrap comes from

Scrap supply is structurally tied to the installed stock of steel (the steel-in-use) in each economy. Per USGS MCS 2026 Iron-Steel Scrap, US apparent scrap consumption in 2025 was ~57 Mt, sourced 89% from net market receipts and 11% from home (mill-internal) scrap. The US is also a large net scrap exporter — first 8 months 2025 export shares: Turkey 29%, Bangladesh 13%, India 10%. Other top global scrap exporters: EU (Netherlands hub, Germany), Russia, Canada, Mexico. Top global importers: Turkey, India, Indonesia, South Korea, Vietnam, Pakistan, Egypt. China is now a net scrap exporter as domestic post-consumer scrap rises.

Who produces scrap

Scrap is not "produced" in the traditional sense — it is collected, sorted, sheared, shredded, baled and traded. The largest scrap-processing groups globally:The Bureau of International Recycling (BIR) publishes annual world recycled-steel statistics.

What scrap is used for

Ferrous scrap feeds two main routes:
  • Electric-arc-furnace (EAF) steelmaking — charge is typically 80-100% scrap (vs ~30% scrap in a BF-BOF). EAF mills produce ~70% of US steel and growing shares in EU and Turkey. Per USGS, the US has 47 EAF companies operating 102 minimills.
  • BF-BOF cooling charge — integrated mills add 15-30% scrap to the BOF for thermal balance.
  • Foundry castings — grey iron and ductile-iron castings use a high-scrap charge.
The EAF route emits 70-80% less CO₂ per tonne of steel than the BF-BOF route, making scrap the most-discussed decarbonisation feedstock of the industry.

Key facts about scrap supply

  • Scrap availability is a function of stock-of-use accumulated over decades — mature economies (USA, EU, Japan) are structurally scrap-rich; rapidly-industrialising economies (India, ASEAN) are structurally scrap-short and must import.
  • EU CBAM imposes carbon costs on imported semi-finished steel from January 2026 — EAF scrap-route steel benefits from the lowest embedded-CO₂ footprint among major steelmaking processes.
  • Reserves: not applicable. Scrap is a recycled stream, not a mineral reserve. The relevant statistic is global stock-in-use, currently estimated at ~33 Gt of steel by the World Steel Association.

Data sources

Editorial principle: every figure on TSM Hub product pages is sourced from an official primary publication (USGS, LME, World Steel Association, EU regulation, or industry association). No Wikipedia or aggregator citations.

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