US scrap trends outlook: June 2024

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.