Steel Market Outlook: Winter 2026
Construction slowdowns and global supply shifts are impacting steel prices. Here's our forecast.
Mike Thompson
Owner, We Buy Your Junk INC
Steel prices have been volatile this quarter, with construction slowdowns and global trade dynamics creating uncertainty. Here’s what scrappers should expect this winter.
Current Market Conditions
Steel scrap prices have softened 10-15% from summer highs. Several factors are at play:
- Seasonal slowdown: Construction activity typically decreases in winter months
- Global oversupply: Chinese steel production remains high despite weak domestic demand
- Interest rates: Higher borrowing costs have slowed new construction projects
What We’re Paying
Current rates at We Buy Your Junk (as of October 2025):
- Heavy Melting Steel: $180 - $200/ton
- Light Iron/Sheet Metal: $140 - $160/ton
- Cast Iron: $160 - $180/ton
- Automobiles (complete): $200 - $250/ton
Our Forecast
We expect prices to remain stable through December, with potential upside in Q1 2026 as construction resumes. Key factors to watch:
Infrastructure Spending
Federal infrastructure projects are ramping up, which should increase steel demand by spring. Michigan has several bridge and highway projects scheduled.
Automotive Production
Detroit automakers are maintaining production levels, providing steady demand for steel scrap in the region.
Export Markets
Turkey and other major scrap importers are showing renewed interest, which could support prices.
“Winter is typically a slower season, but we’re optimistic about 2026. Hold your steel if you can, or sell now if you need the cash—prices are still fair.” — Mike Thompson, Owner
Stay Informed
We update our prices daily based on market conditions. Call ahead or check with our yard staff for the most current rates.