US scrap trends outlook: June 2024

Here are the key takeaways from the US scrap market participants in our June survey

What’s the market sentiment for June?

  • The trend indicator for June is at 45.7, with a consensus at 59%
  • Buyers, brokers and sellers are aligned in their outlook with indicator values ranging from 43.9 to 46.1
  • 15.5% of the respondents expected higher prices, 38.1% expected lower prices
  • Inventory levels are at 51.5, indicating that stockpiles are sufficient to meet demand

Read on for a summary of the results of our US ferrous scrap market survey for June or click here to download your copy of the full US scrap trends outlook.

Anticipated decline in scrap prices amidst lower demand

In June 2024, the US scrap market is expected to see a decline in prices driven primarily by lower demand. The overall trend indicator has dropped to 45.7, suggesting a downturn in market sentiment compared to previous months. This is reflected in the forecasted scrap price change of -2.4% month-on-month, signalling an anticipated reduction in prices.

Aligned outlook for all market participants

Consensus among surveyed participants is tight, with a consensus index of 0.59, indicating agreement on the market’s direction. Buyers, brokers, and sellers are all aligned in their outlook, with their respective trend indicators at 43.9, 47.2, and 46.1.

Inventories are sufficient to meet demand

Inventory levels are slightly above average at 51.5, suggesting that stockpiles are sufficient to meet current demand. The primary market driver identified for this period is lower demand, which is expected to exert downward pressure on scrap prices. The current downward trend is therefore expected to continue into June.

What to read next
The publication of Fastmarkets’ Vietnamese steel scrap import assessments for Friday June 14 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
Extreme weather phenomenon, including catastrophic hurricanes, is driving increasing adoption of metal roofing and therefore Galvalume, market participants said during a trade show in Florida
Just 10 days after they were implemented, Brazilian importers have fully consumed the 62,300 tonnes of Galvalume reserved for import license quotas that were supposed to supply the market until the end of September, according to figures sent to Fastmarkets by the country’s Industry, Development and Trade ministry (MDIC)
Tight aluminium scrap availability, the increase in container costs, sluggish demand in the US and the US market’s current indifference to rising premiums in Europe and Asia were the top subjects discussed during the Harbor Aluminum Summit that took place in Chicago on June 4-6
The publication of Fastmarkets’ aluminium scrap and secondary aluminium ingot price assessments for Wednesday June 12 were delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
Tata Steel intends to continue with plans to close its blast furnaces at the Port Talbot Steelworks in Wales, and called for both of the UK’s major political parties to adhere to the terms of its plan to develop a lower-emissions electric-arc furnace-based steelmaking plant on the site, the firm said on Tuesday June 11