Does Scrap Still Matter? The New Math Behind Steel Prices

Scrap prices have historically been one of the key signals for where steel prices are headed. But right now, that relationship isn’t behaving the way many buyers would expect.In this episode of Cup O’ Joe, Mike and Nick dig into the new math behind steel pricing. While scrap has remained relatively stable, finished steel prices continue to move higher as tariffs, tight domestic supply and limited mill availability exert more influence on the market.The conversation explores why the traditional correlation between scrap and steel has weakened, how tariffs may be creating a new floor under domestic pricing, and why some mills are limiting—or even declining to quote—new spot business.Mike and Nick also look at the contrast between carbon steel and stainless, where market conditions remain comparatively balanced.The big question: If scrap is no longer driving the market the way it once did, what should steel buyers be watching instead?