Scrap Iron Prices in Canada: Trends and Market Insights [2026]
Scrap iron is a valuable and highly sought-after scrap metal in Canada, including the whole world, as it is used as a key raw material for various productions. Scrap iron is in high demand, and its prices fluctuate based on multiple factors, such as global demand, local industrial activities, and others. In this article, we will explore the current trends in scrap iron prices in Canada and the factors influencing these prices.
Current Trends in Scrap Iron Prices
Recent data shows scrap that iron prices in Canada range from CA$160 to CA$340 per metric ton. However, like the prices of other scrap metals in the market, the price of scrap iron fluctuates depending on various factors.
Here are the estimated prices for different types of scrap cast iron.
| Scrap Iron Type | Price (CAD per Metric Ton or Net Ton) |
|---|---|
| Car Bodies (with Motor) | $255 |
| Car Bodies (without Motor) | $225 |
| Shred/Mixed Tin | $255 |
| White Goods | $225 |
| Bailing Clips/Mixed/Dealer | $265 |
| HMS #1 (4' Max) | $280 |
| HMS Oversized | $230 |
| P&S (4" Max) | $340 |
| P&S Oversized | $290 |
| Auto Cast | $335 |
| Mixed Cast | $280 |
| Rebar Oversized | $160 |
| Rebar | $210 |
| Black Cast Iron | $217/MT |
| Cast Iron Scrap | $291/NT |
| White Cast Iron | $160/MT |
Factors Influencing Scrap Iron Prices
No single parameter drives the scrap iron prices upward or downward. The following are several factors contribute to the pricing of scrap iron in Canada:
1. Global Steel Demand
Steel is an alloy made mainly from iron (typically scrap iron is used) and carbon (normally less than 2%). So, It is a key end product of scrap iron, and its demand directly influences scrap prices. Economic growth, infrastructure projects (e.g. roads, bridges, etc), and manufacturing (e.g. auto and electronics) activity in big economies like the United States Of America, China, and India are crucial in determining global steel demand.
Example:
In the recent years of 2021, the U.S. government announced a 1.2 trillion dollar infrastructure bill to rebuild roads, bridges, and railways. So, this is a massive infrastructure project (more than the GDP of many countries ), and it requires significant amounts of steel for construction. As a result, the steel demand will be high not only in the USA but also in the world, and since scrap iron is a key raw material for steel production, the demand for scrap iron will also increase.
2. Commodity Market Trends
Scrap iron prices are tied to the broader commodity market, including iron ore and coking coal. This is because traditional steel production relies heavily on iron ore (scrap iron can be used as a substitute for iron ore) and coking coal. When iron ore prices rise, scrap iron becomes a more attractive alternative for steel production, driving up its price.
3. Currency Exchange Rates
Since scrap iron is traded globally, the value of the Canadian dollar relative to the U.S. dollar and other currencies can influence export demand and pricing.
4. Recycling Industry Dynamics
The efficiency of recycling in scrap collection, processing, and transportation affects scrap metal prices. Regions with robust recycling infrastructure, such as Toronto, tend to experience more stable prices due to competitive dealer rates and a strong industry framework.
5. Environmental Policies
The government’s environmental policies can also be a major factor influencing the price of scrap iron. Whenever the government imposes stricter regulations, the scrapyard or recycling centre may adjust prices to meet their profitability or ROI. For example, policies that reduce carbon emissions have increased interest in using scrap iron for steel production, as it is more environmentally friendly than extracting virgin iron ore. Government incentives for green manufacturing can also increase demand and, consequently, scrap iron prices.
6. Seasonal Factors
The activities that rely on the environment, such as construction activity, which drives demand for steel and scrap iron, tend to slow down during extreme winter, leading to less demand and, hence, lower prices.
Conclusion
Scrap iron prices in Canada are influenced by a complex interplay of global and domestic factors, so the rates fluctuate on the basis of these factors. Whether you’re a business involved in the scrap trade or an individual looking to recycle, understanding the price of scrap iron can help you make informed decisions and negotiate the best way for the best price.
