Scrap metal recycling is a booming industry in Texas, fueled by the state’s strong manufacturing sector, construction activity, and access to export markets. Among the most commonly traded materials in this market is ferrous scrap metal, which refers to metals that contain iron. For individuals, businesses, and recyclers looking to sell or buy, understanding ferrous scrap metal prices in Texas is essential for making informed decisions.
What Is Ferrous Scrap Metal?
Ferrous metals are metals that contain iron and are magnetic. They are commonly used in construction, automotive, shipbuilding, appliances, and industrial manufacturing. Because of their strength and durability, ferrous metals are heavily used in infrastructure and equipment—but when they reach the end of their life cycle, they enter the recycling stream as scrap.
Examples of ferrous scrap metals include:
Steel (light and heavy gauge)
Cast iron
Wrought iron
Engine blocks and auto parts
Household appliances (with metal frames)
Demolition scrap (beams, pipes, rebar)
Ferrous scrap is usually sold by weight and is either shredded, baled, or processed before being melted down and reused.
Why Recycle Ferrous Metals?
Recycling ferrous metals offers both environmental and economic benefits. These include:
Reduced need for mining natural resources
Energy savings in metal production
Lower production costs for steel mills and manufacturers
Income generation from selling unused materials
Texas has a vast and growing recycling network, and the state's industrial activity ensures a consistent demand for recycled steel and iron.
Key Factors That Influence Ferrous Scrap Prices in Texas
1. Global Steel Market Trends
Because most ferrous scrap ends up in steel mills, the global demand for steel has a direct impact on prices. When steel demand is high, scrap prices usually rise as mills compete for raw material.
2. Type and Grade of Scrap
Not all ferrous metals are treated equally. For example, clean heavy melting steel (HMS) fetches more than mixed or contaminated materials. Grades include:
HMS #1 (Heavy Melting Steel) – Cleaner, thicker steel (½ inch or more)
HMS #2 – Thinner steel, may contain small amounts of rust or attachments
Shredded Steel – Mixed scrap processed into small pieces
Cast Iron – Heavy and dense, used in engines and machinery
3. Cleanliness and Condition
Scrap free of paint, oil, rust, and other contaminants sells for higher prices. Mixed scrap or dirty materials may be downgraded.
4. Quantity
Larger loads often secure better per-ton pricing. Scrap yards may offer bulk rates or bonuses for consistent, high-volume suppliers.
5. Regional Supply and Demand
In large Texas cities like Houston, Dallas, and San Antonio, competition among buyers can drive prices higher. In more rural areas, transportation and processing costs may reduce the price offered to sellers.
6. Export Markets
Texas ports ship large quantities of scrap metal overseas, especially to Mexico, India, and Southeast Asia. If overseas demand is strong, local prices tend to increase.
Average Ferrous Scrap Metal Prices in Texas (As of 2025)
Prices fluctuate weekly based on market conditions. However, as of the latest available data, typical prices across Texas are:
HMS #1: $280 – $320 per gross ton
HMS #2: $250 – $290 per gross ton
Shredded Steel: $270 – $310 per gross ton
Cast Iron: $300 – $340 per gross ton
Light Iron (appliances, thin metal): $180 – $230 per gross ton
Note: A gross ton equals 2,240 pounds, slightly more than a standard ton (2,000 pounds).
Prices can vary by city. For example:
In Houston, prices may trend slightly higher due to proximity to export ports.
In Dallas, strong industrial demand supports competitive pricing.
In El Paso, pricing may be influenced by cross-border trade with Mexico.
Where to Sell Ferrous Scrap in Texas
There are hundreds of scrap yards and metal recycling centers across Texas. Some specialize in ferrous materials, while others accept a mix of metal types. Common places to sell include:
Local scrap yards
Industrial recyclers
Auto salvage yards
Construction and demolition recycling centers
Mobile scrap buyers (for large volumes)
Before visiting, it's wise to call ahead to confirm accepted materials, payment terms, and ID requirements.
Legal Considerations
Texas scrap yards are regulated to prevent the illegal sale of stolen materials. Sellers should:
Provide a valid ID at the time of sale
Be prepared to have their materials photographed and documented
Sign a receipt or declaration confirming ownership of the scrap
Wait for payment, as some transactions require a short holding period before issuing checks
Tips for Getting the Best Price
Sort Your Scrap: Separate HMS, light iron, and cast iron. Don’t mix metals if you want top rates.
Clean the Metal: Remove wood, rubber, plastic, or paint whenever possible.
Weigh Before You Go: Know your approximate weight to compare quotes.
Check Weekly Prices: Ferrous scrap prices change often—timing your sale can make a difference.
Build Relationships: Returning to the same yard consistently may earn you loyalty bonuses or better pricing.
Environmental and Economic Impact
Recycling ferrous metals in Texas helps conserve natural resources and reduce carbon emissions. It also supports thousands of jobs in the recycling, transportation, and steel industries.
By turning waste metal into reusable raw materials, the scrap industry plays a crucial role in both the economy and the environment—making it a smart choice for anyone with access to used metal.
Conclusion
Texas is a major hub for the recycling of ferrous scrap metal, offering sellers and recyclers a robust market with fair pricing and high demand. Whether you're cleaning up a construction site, dismantling old equipment, or operating a scrap collection business, understanding ferrous scrap metal prices in Texas can help you make more money and contribute to a more sustainable future.
