What is market sentiment like in June?
- The trend index for June was 45.7, with the consensus being 59%.
- Buyers, brokers and sellers are in agreement on their outlook, with index values ranging from 43.9 to 46.1.
- 15.5% of respondents expected prices to rise, while 38.1% expected prices to fall.
- Inventory levels were at 51.5, indicating there was enough stock to meet demand.
Read on for a summary of the June U.S. ferrous scrap market survey results, or click here to download the full U.S. Scrap Trends Outlook.
Scrap prices are expected to fall due to declining demand
The US scrap market is expected to experience a decline in prices in June 2024, primarily due to lower demand. The overall trend index has fallen to 45.7, suggesting a worsening in market sentiment compared to the previous month. This is reflected in the forecast scrap price change of -2.4% m/m, indicating a decline in prices is expected.
All market participants agree on the outlook
The consensus among those surveyed was tight, with a consensus index of 0.59, indicating agreement on the direction of the market. Buyers, brokers, and sellers all agreed on their outlook, with trend indexes of 43.9, 47.2, and 46.1, respectively.
Inventory is sufficient to meet demand
Inventory levels are slightly above average at 51.5, indicating there is sufficient inventory to meet current demand. The primary market driver during this period is weaker demand, which is expected to put downward pressure on scrap prices. Therefore, the current downward trend is expected to continue through June.
