Canadian Steel Scrap Market Q1 2025

Steel scrap prices are determined primarily by demand from electric arc furnace (EAF) steelmakers, who use scrap as their primary raw material.

How steel prices are set

Unlike non-ferrous metals, steel scrap prices are not set on a daily commodity exchange. They are negotiated between steel mills and large scrap dealers monthly. This means prices change less frequently but can move significantly when they do.

Canadian EAF activity

Several Canadian steel producers are EAF-based, including operations in Ontario and Quebec. Their buying demand drives local scrap prices, particularly for heavy melting steel and shredded scrap.

Trade factor

Canada both exports and imports steel scrap depending on price differentials with US markets. When US steel prices are high relative to Canada, Canadian scrap flows south, tightening local supply and pushing domestic prices up.

For residential sellers

Light iron prices are set as a derivative of heavy steel prices. When mill demand is strong, even light residential scrap sees a bump. When mills are running at reduced capacity, prices flatten. The current environment is moderately positive.