Why Scrap Prices Are Rising in 2026 and What Sellers Need to Know
Across Mid-Michigan, more homeowners, farmers, contractors, and industrial businesses are asking the same question: Why are scrap prices rising in 2026? Whether you are watching copper climb, noticing stronger steel pricing, or seeing more competition for non-ferrous metals, the shift is real and measurable.
At Fair Salvage Company, we see these changes play out daily at our locations in Clare, Chase, and Montcalm. Rising scrap prices are not being driven by a single factor. Instead, they are the result of multiple pressures stacking on top of each other at the same time.
Understanding what is behind these price increases helps sellers make smarter decisions about when to sell, how to prepare material, and how to maximize total payout.
Why Scrap Prices Are Rising in 2026 Is Not a Simple Answer
When people ask why scrap prices are rising in 2026, they often expect one clear explanation. In reality, the market is responding to several forces at once.
As Jon Fair explains:
“There isn’t just one thing. It’s a stack of pressures all happening at the same time.”
Those pressures include global demand, supply constraints, currency shifts, seasonality, and long-term changes in how raw materials are sourced.
Global Demand Is Outpacing Supply
One of the biggest drivers behind rising scrap prices is global demand. Modern infrastructure depends on metals more than ever. Data centers, electric vehicles, renewable energy projects, and nationwide infrastructure upgrades all require massive amounts of copper, aluminum, and steel.
Demand has not slowed. In many sectors, it has accelerated.
Jon points out another critical factor:
“The U.S. dollar weakened again last year, and when the dollar weakens, commodity prices tend to rise.”
Because metals are traded globally, currency fluctuations directly impact pricing. When the dollar weakens, it takes more dollars to buy the same amount of material, which pushes prices higher across commodity markets.
Why Mining Constraints Make Recycling Essential
Another major reason scrap prices are rising in 2026 is the limited ability to quickly increase mining output.
Jon explains it this way:
“We’ve spent decades deciding mining is dirty and something we don’t want to do in this country. The reality is, it can take 20 to 30 years to bring a new mine online.”
Mining is a long-term investment with long lead times. Even when prices rise, supply cannot be increased overnight. Meanwhile, demand continues without interruption.
This gap is where recycling becomes essential.
“You’ve got two choices: dig it out of the ground or recycle it. There’s no AI or Bitcoin without copper. Recycling becomes the fastest, cleanest way to supply those materials.”
Scrap recycling fills the gap between demand and limited raw material supply. That reality is a key reason recycled material prices continue to climb.
Why Recycled Materials Track Commodity Markets
Some sellers wonder why scrap prices seem to rise and fall alongside global commodity markets. The answer lies in how recycled metals are used.
Recycled copper, aluminum, and steel do not exist in a separate economy. Mills rely on scrap as a primary input. When commodity prices rise, recycled material becomes more valuable because it offsets the need for newly mined resources.
This is especially visible with copper. As outlined in our article on copper scrap prices, copper consistently leads price movements because of its role in power, technology, and infrastructure. When copper moves, other non-ferrous metals often follow.
Seasonality Plays a Bigger Role Than Many Sellers Realize
Seasonality is another factor driving higher scrap prices in 2026.
Bob James explains:
“In winter, less scrap flows into yards. Mills still need material, but supply tightens. When supply drops faster than demand, prices go up.”
In colder months, fewer demolition projects, farm cleanups, and construction jobs are active. That reduces scrap flow at the same time mills maintain steady demand. The result is upward price pressure that can carry into spring and beyond.
What This Means for Local Scrap Sellers in Michigan
For local sellers, rising scrap prices create opportunity. However, opportunity only turns into profit when sellers understand how to respond.
Higher prices reward preparation and timing more than ever. Sellers who separate materials, monitor pricing trends, and work with transparent scrap yards are positioned to benefit the most.
At Fair Salvage, we encourage sellers to focus on total load value rather than individual line items. That approach becomes even more important during periods of price volatility.
A Real-World Example From the Yard
One Fair Salvage team member recently noted a pattern while working with contractors bringing in mixed loads. Two loads might weigh the same, but the payout difference can be significant depending on how materials are sorted.
When copper, aluminum, and brass are separated instead of mixed with steel, rising commodity prices work in the seller’s favor. When everything is combined, that value is diluted.
Rising prices magnify both good habits and costly mistakes.
Are We Seeing a Short-Term Spike or Something Bigger?
Another common question is whether this is just a temporary surge.
Jon offers perspective:
“I think we’re in a commodity supercycle. This is what re-industrialization looks like when you don’t mine aggressively. High prices eventually fix high prices, but we’re not there yet.”
A commodity supercycle refers to a prolonged period of elevated prices driven by structural demand rather than short-term speculation. If this outlook holds, recycling will continue to play a central role in supplying critical materials.
How Fair Salvage Helps Sellers Navigate Rising Prices
At Fair Salvage, our role is to guide sellers through changing markets with clarity and honesty. Rising prices can be confusing, especially when headlines focus on one material while ignoring the full picture.
We help sellers:
- Understand how global trends affect local pricing
- Evaluate total payout instead of single posted prices
- Prepare scrap to capture maximum value
- Plan ahead with on-site scrap container programs for consistent returns
You can stay informed by reviewing current pricing at https://fairsalvage.com/pricing/ or exploring accepted materials and services at https://fairsalvage.com/recycling-services/. Our Mid-Michigan locations are listed at https://fairsalvage.com/locations/, and additional educational resources are available on our blog at https://fairsalvage.com/blog/.
Why Scrap Prices Are Rising in 2026 Is Also a Local Story
While global forces drive markets, the impact is felt locally. Rising scrap prices reward sellers who work with experienced, transparent recyclers that understand both market dynamics and community needs.
Fair Salvage has spent decades building relationships across Mid-Michigan. Our customer-first approach ensures sellers are not guessing when markets move. They are informed, prepared, and positioned to benefit.
Ready to Take Advantage of Rising Scrap Prices?
If you are wondering how rising scrap prices in 2026 affect your materials, Fair Salvage is here to help you evaluate your options and maximize your return.
Request a quote today:
https://fairsalvage.com/request-a-quote/