Recycling, Scrap Metal & Commodities Report — Week of February 23, 2026
Brought to you by BENLEE Roll-Off Trailers
Supreme Court Reshapes the Tariff Landscape
A significant ruling from the U.S. Supreme Court is reverberating through manufacturing and commodities markets this week. The Court struck down much of the administration’s broad tariff framework, but kept steel, aluminum, and furniture tariffs in place on national security grounds. In the interim, a 15% global tariff has been established for 150 days while new permanent rates are worked out. The ruling creates both relief and uncertainty — markets responded positively, but the longer-term picture remains unsettled.
Steel: Production Climbing, Prices Holding
Domestic raw steel production ticked up to 1.8 million tons for the week, a 1% gain over the prior week and 4% ahead of last year’s pace. The 50% steel tariff protection continues to underpin production even as U.S. manufacturing demand grows only modestly. Hot-rolled coil prices rose to $987 per ton ($49.35/cwt), reflecting the same dynamic — tariff support offsetting sluggish demand growth.
Scrap steel #1 HMS held steady at $388.33 per gross ton, caught between slow domestic demand and mixed signals from export markets.
Oil: Prices Rise as Geopolitical Risks Mount
WTI crude climbed to $66.48 per barrel, up roughly 20% over the past two months. A potential U.S. military strike on Iran is adding a risk premium, while the tariff court ruling provided additional economic optimism. Production rose to 13.735 million barrels per day as higher prices incentivize output. The rig count held steady at 409, reflecting strong per-well productivity and continued driller discipline.
Copper and Aluminum: Diverging Stories
Copper jumped to $5.87 per pound, buoyed by the tariff relief improving the global demand outlook — though rising inventories are worth watching as a potential headwind.
Aluminum edged up to $1.41 per pound ($3,102/MT). Unlike steel, aluminum tariffs were not affected by the Supreme Court ruling, so the modest price gains here are driven by solid demand and persistent global supply constraints.
Trade Deficit Hits Historic Levels
The U.S. goods trade deficit widened to $98.5 billion in December, with imports rising 3.8% and exports falling 3.0%. While the deficit with China narrowed, record deficits emerged with Mexico, India, and Vietnam. For full-year 2025, the goods trade deficit was the largest in American history — a sobering backdrop for ongoing trade policy debates.
Inflation Remains a Concern
The Core PCE price index — the Federal Reserve’s preferred inflation gauge — rose to 3.0% in December, well above the 2% target. How the new 15% global tariff will feed through to consumer prices remains an open question that markets are watching closely.
Economic Growth Slows to Close 2025
U.S. GDP grew just 1.4% in Q4, a sharp deceleration from Q3’s 4.4% pace. The government shutdown shaved approximately 1.1 percentage points off that figure. Full-year 2025 growth came in at 2.2%, down from 2.8% in 2024. Consumer spending on goods weakened while services held up better. Anticipated larger consumer tax rebates could provide a boost heading into 2026.
On the positive side, U.S. manufacturing output expanded 2.4% year-over-year in January — the strongest factory growth since March 2022 — driven by AI data center buildout and increased defense production tied to conflicts in Ukraine, Iran, Venezuela, and Gaza.
Markets
The Dow Jones Industrial Average closed up 125 points at 49,626, as investors balanced the positive tariff court ruling against weak GDP and persistent inflation pressures.
This report is produced by BENLEE BENLEE Roll off trailers, manufacturer of roll-off trailers, roll-off trucks, gondola trailers, lugger trucks, and roll off truck replacement parts. Have questions? Reach out to Greg Brown directly. Wishing everyone a safe and profitable week.
Greg Brown
greg.brown@benlee.com
734-722-8100
