SMU Community Chat
Scrap market trades sideways in June
Written by Stephen Miller
June 4, 2025
The US scrap market has traded sideways from May prices in basically one day without any significant descent, sources say. All major steelmakers, with maybe one exception, issued orders at prices paid in May.
During the month of May there was speculation the market would de down somewhat as a “soft sideways” was predicted. There was concern about a weak and lackluster export situation and a surplus of scrap in Canada due to decreased needs by Canadian mills.
As the month went on, export came back a bit and domestic scrap facilities reported decreased flows which uplifted dealer sentiment to “strong sideways.” There was talk of strong buying programs at domestic mills.
However, in the end, the market went “just sideways,” despite export falling in Europe and scrap in Canada, mainly Western Canada, still overhanging the market.
It is a matter of opinion at this stage if the increase in steel tariffs from 25% to 50% played a role in June pricing, whether if it was psychological or otherwise.
Stephen Miller
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