US Scrap Trends Outlook: June

The outlook for North American steel scrap prices has headed further into bearish territory ahead of June's trade, with prices for all grades expected to fall again after a round of across-the-board decreases in May

Outlook for steel scrap price in June

The US steel scrap market is headed for its second consecutive month of downturn across all grades in June with the onset of the typically quiet summer season ushering in further weakness.

The Trend Indicator tipped into increasingly bearish territory with a posting of 34.4, down from May’s already-negative reading of 35.4. The scrap trends outlook’s prediction model allows for a potential average price drop of 13% in June. Learn more in our latest scrap outlook.

A significant 62.5% of survey participants anticipate that prices will be lower in June versus May while 29% posit that the market could trend sideways over the period. Lower scrap demand is the driving factor behind June’s slated downward correction according to 54.41% of respondents. Find out what US steel scrap buyers, sellers and brokers think about market conditions.

Pre-trade expectations for steel scrap prices

Shredded scrap is expected to underperform its cut and prime counterparts next month. Pre-trade talk that mills will be looking to redress the balance in Midwest shredded scrap prices – which are trending $50 higher per ton than their Southern equivalents in some instances – is likely fueling this expectation.

A lack of robust export options may pull the rug further from under the market for cuts and shred following a period of sequential decline in prices to Turkey. Overall trend consensus rose to 65% in June versus 59% in May, suggesting that the market is increasingly aligned on the direction the market will take. Learn more.

Make sense of the US steel scrap market and track the critical indicators impacting steel scrap price movements in our latest outlook.

What to read next
The publication of Fastmarkets’ MB-BMS-0014 Black mass, NCM/NCA, payable indicator, cobalt, domestic, exw USA, % payable Fastmarkets’ standard-grade cobalt price assessment and MB-BMS-0015 Black mass, NCM/NCA, payable indicator, nickel, exw USA, % payable LME Nickel cash official price assessment for Wednesday November 20 was delayed due to reporter error. Fastmarkets’ pricing database has been updated.
Navigating the steel market's new terrain: tariff impacts on global markets and US manufacturing
Fastmarkets has corrected its MB-AL-0399 aluminium scrap, old sheet (Taint/Tabor), cut sheared, 5-8% attachments, cif India price assessment, which was published incorrectly on Wednesday November 20.
China’s electric vehicle (EV) and battery industry participants expect more uncertainty under a second Donald Trump presidency amid the president-elect’s intention to scale back the Inflation Reduction Act (IRA) and pursue expanded protectionist trade policies, sources told Fastmarkets on Thursday November 7
United States Antimony Corporation has been holding financing discussions with the United States Department of Defense (DoD) as it seeks to significantly expand the capacity of the country’s only antimony smelter, the company’s chairman and co-chief executive officer told Fastmarkets.
Watch this interview with Fastmarkets' in-house expert, Jennifer Coskren, director of wood products and timber, to learn more about the state of the US housing market and a look ahead to 2025.