The ferrous scrap metal market in Texas plays a significant role in the state’s economy, especially considering Texas’s large industrial base, robust manufacturing sector, and proximity to export ports. Ferrous scrap metal, which primarily includes steel and iron-based materials, is in high demand due to its vital use in steel production and recycling industries. This article will explore the current state of ferrous scrap prices in Texas, the factors that influence those prices, key market players, and future outlooks.
What is Ferrous Scrap?
Ferrous scrap consists of materials containing iron. This includes:
Heavy Melting Steel (HMS)
Shredded Scrap
Cast Iron
Steel Turnings
Demolition Scrap from buildings and infrastructure
Ferrous scrap is magnetic and widely used in electric arc furnace (EAF) steelmaking. Texas is home to several steel mills that rely heavily on scrap as raw material, contributing to a dynamic and competitive local market.
Current Price Range in Texas (As of Early 2025)
Ferrous scrap prices in Texas can vary by region (e.g., Houston, Dallas, San Antonio) and type of scrap. On average, as of Q1 2025:
HMS #1: $290 – $340 per gross ton
Shredded Steel Scrap: $310 – $360 per gross ton
Cast Iron: $250 – $300 per gross ton
Steel Turnings: $180 – $230 per gross ton
These prices fluctuate weekly and are influenced by local supply, demand, and international steel market trends.
Factors Affecting Ferrous Scrap Prices in Texas
Steel Mill Demand
Texas has multiple steel mills and foundries that consume large quantities of scrap. When these mills increase production, scrap prices tend to rise due to higher demand.Export Markets via Gulf Ports
Texas ports, especially the Port of Houston, serve as export points for scrap metal to countries like Turkey, Mexico, and India. Export demand heavily influences prices within the state.Industrial Activity
Construction, oil & gas, and manufacturing industries in Texas produce and consume ferrous materials. Booming industrial activity often means higher scrap prices.Local Scrap Availability
Scrap collection rates from auto recycling, demolition projects, and manufacturing scrap impact the supply side. If supply is tight, prices go up.Transportation Costs
Fuel prices and trucking availability can impact the cost of moving scrap. In Texas, long distances between rural yards and urban buyers can influence pricing dynamics.Seasonality
Harsh weather or hurricanes can disrupt collection and transport, temporarily reducing supply and causing price hikes.
Key Buyers and Yards in Texas
Some of the major players in the Texas scrap metal market include:
CMC Recycling – With locations across Texas, CMC is one of the largest buyers of ferrous scrap.
SA Recycling – Operates in several Texas cities and is a significant processor and exporter.
Texas Recycling – Based in Dallas, this facility handles both ferrous and non-ferrous materials.
Schnitzer Steel – A national recycler with operations in Texas.
These companies offer competitive prices and often update their rates weekly based on market movements.
How to Get the Best Scrap Prices in TX
If you're a seller (individual or business), here are some tips:
Sort and Clean Your Scrap: Clean, separated scrap (like pure steel) gets higher rates than mixed or dirty scrap.
Know the Grades: Understanding the classification of your scrap (HMS 1, HMS 2, shredded, etc.) can help you negotiate better.
Check Local Prices: Contact multiple yards or check online listings to compare prices in your region.
Time Your Sales: Watch market trends and try to sell during price spikes driven by demand.
Market Outlook for 2025 and Beyond
Industry analysts expect steady demand for ferrous scrap in Texas due to:
Infrastructure Projects: Federal and state investments in roads, bridges, and energy infrastructure will increase steel consumption.
Sustainability Trends: Steel mills are under pressure to reduce carbon emissions, making recycled scrap a preferred input.
Global Demand: As countries like Turkey and Mexico increase steel output, they will continue to rely on Texas scrap exports.
However, potential risks include:
Fluctuating fuel prices
Economic slowdowns
Tariff changes or trade restrictions
Still, most forecasts suggest ferrous scrap prices in Texas will remain strong through the end of 2025, with seasonal ups and downs.
Conclusion
Texas remains a key player in the U.S. ferrous scrap metal market. With its strong industrial base, active steel mills, and access to global export routes, the state offers a dynamic market for scrap dealers, recyclers, and sellers. By understanding the local and global factors that affect pricing, stakeholders in Texas can make informed decisions and maximize their returns in this competitive industry.
