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US ferrous scrap prices are expected to edge higher in June, with market sentiment pointing to a limited month-on-month increase rather than a sharp move.
Read on for some highlights from our US ferrous scrap market survey for June or click here to download your copy of the full US scrap trends outlook.
The Trend Indicator posted a reading of 54.9 ahead of June trade, remaining above the neutral 50 level but well below levels associated with a more forceful upward price move. The Outlook’s prediction model allows for an average month-on-month scrap price increase of 2.0%, following a 1.4% increase in the previous month.
Geopolitical uncertainty is weighing on themarket. Survey participant
Geopolitical uncertainty is weighing on themarket.
Survey participant
Market participants appear to view current conditions as broadly balanced. Inventory levels are estimated at 50.7, close to average stocking levels, suggesting that mills are neither meaningfully short nor heavily long on scrap units heading into June.
Sentiment differs notably by market side. Sellers are the most bullish, with a Trend Indicator reading of 67.1, while brokers are neutral at 50.0 and buyers are more cautious at 47.5. This spread suggests that sellers may seek higher prices, while buyers are less convinced that market fundamentals justify a stronger increase.
The Market Driver response of “All Unchanged” supports the view that no single factor is expected to strongly push prices in either direction. Consensus was 67%, slightly above the recent average range, indicating somewhat less agreement among respondents around the June outlook.