Second Quarter 2026: Resilience in the face of Adversity
Our Markets & Metals feature of Wreckonomics™ series
Heading into the second half of 2026, the End of Life vehicle (ELV) and metals scrap metal markets continue to demonstrate resilience in a pressurized system. The sustained and specific demand for end of life vehicles and component materials had a good quarter, driven by structural shifts in global manufacturing, EV supply chains, and domestic infrastructure projects.
Ferrous Metals (Steel, Iron, Auto Scrap)
Automotive Scrap
Vehicle recycling rates remained steady, but scrap inputs saw moderate cost increases as domestic mills competed for high-yield secondary raw materials. Average scrap costs for steel producers ticked up modestly through June.
Mill Utilization & Demand:
U.S. steel mills operated at elevated utilization rates (surpassing 90%), driving steady demand for Prime Scrap and Heavy Melting Steel (#1 HMS).
Non-Ferrous Metals
Copper:
Copper scrap was one of the standout performers in Q2 2026. US scrap copper prices moved steadily upward driven largely by restocking demand from electrical, cable manufacturing, and grid-upgrade projects.
Aluminum
Lightweighting in automotive manufacturing and steady aerospace recovery continued to support clean aluminum grades e.g. automobile rims and wheels.
EV & Battery Metals:
Q2 saw expanding infrastructure for lithium-ion battery recycling. Battery scrap and high-nickel/cobalt content began commanding significant premiums as domestic recycling operations scaled up.
What to Watch in Q3:
Construction & Infrastructure Metal Demand
Infrastructure projects fully underway in Q3 will maintain solid baseline demand for structural steel, rebar, and electrical copper wiring. Mills are forecasting sustained shipment volumes through Q3, which will keep scrap buy-side demand firm.
Widening Supply Deficits in Electrification Metals
Primary copper supply continues to lag behind growing demand from data centers, renewable power, and EV manufacturing.
Seasonal “Summer Slowdown” vs. Scrap Scarcity
Mid-summer historically brings plant turnarounds and temporary factory slowdowns. However, because scrap inventories remain lean across yards, any drop in collection volume could trigger short-term scrap price rallies as processors fight for volume to fulfill mill contracts.
Automotive & Auto Scrap Demand
End-of-life vehicle scrap should continue to benefit from the high component and material value of catalytic converters, copper wiring harnesses, and aluminum body elements. ELV values are likely to stay favorable for sellers throughout Q3.
What This Means for Scrap Sellers and Suppliers
For fleets, consumers, lenders and insurers: If you hold end-of-life vehicles or auto scrap, Q3 presents an opportunistic window. Steady ferrous prices paired with valuable non-ferrous components ensure competitive junk car payouts.
If your organization has a consistent volume of low value, high mileage and older vehicles, we should talk. Reach out to any of our team directly or email us at arsinfo@arscars.com