Steel scrap cost per ton measures the average cost of ferrous scrap or related metallic inputs consumed in steelmaking, expressed per ton under the issuer's reporting basis.
For electric-arc-furnace producers, scrap and scrap substitutes are major production inputs.
Scrap is a core variable cost
Nucor states that scrap and scrap substitutes are the most significant element in its steel-production cost.
It reported an average scrap and scrap-substitute cost of $422 per gross ton used in the second quarter of 2026, up from $403 a year earlier.
Steel Dynamics reported average ferrous scrap cost per ton melted of $404 for the first half of 2026.
The tonnage basis matters
A gross ton equals 2,240 pounds. A net ton equals 2,000 pounds.
Nucor publishes some scrap-cost figures per gross ton used and also presents supplemental per-net-ton figures. Steel selling prices are commonly discussed per net ton.
Investors should therefore avoid subtracting figures with different unit bases without converting them.
For example:
$422 per gross ton ÷ 2,240 × 2,000 ≈ $377 per net ton
Nucor's supplemental second-quarter 2026 presentation reports the corresponding scrap and substitute cost at $377 per net ton used.
Scrap cost is not total mill cost
Metallic inputs do not include every steelmaking expense.
Energy, labor, alloys, consumables, maintenance, depreciation, freight, and other plant costs remain economically important.
That is why scrap cost per ton is best used to analyze Steel Metal Spread, not to estimate full cost per ton by itself.
Scrap exposure differs by steelmaking route
Electric-arc furnaces rely heavily on recycled ferrous scrap and substitute metallics.
Integrated blast-furnace routes use a different raw-material mix, including iron ore, coke, and other inputs. Comparing one producer's scrap cost with another producer's total raw-material economics can therefore be misleading.
Primary-source examples
- Nucor second-quarter 2026 Form 10-Q
- Nucor second-quarter 2026 earnings presentation
- Steel Dynamics first-half 2026 results
Steel scrap cost per ton is most useful as the metallic-input leg of EAF economics, with careful attention to gross-ton versus net-ton reporting.
Part of the Steelmaking Operating Model
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
Continue Research
Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.
Compare steel companies
Continue into stock comparison for scrap input costs, metal spreads, realized steel pricing, margins, and valuation context.
Explore more topics in the Financial Research Encyclopedia.