SMU Scrap Survey: Current Sentiment rises as Future Sentiment falls

Current Sentiment Index

SMU’s Current Sentiment Index for scrap rose three points to +72 in September vs. +69 a month earlier. This is well within the 63-77 band we’ve seen it in since February.

Future Sentiment Index

SMU’s Future Sentiment Index for scrap dipped by two points to +81 compared with August. Even with the drop, future sentiment continues to track higher than current sentiment.

What’s the word on the street?

The word on the street is the market was a bit sloppy in September. There was dealer resistance to dropping prices on shredded and HMS. And flow on these grades has fallen off a bit.

But sellers did not resist a $20/gt decline in prime grades because much of the trade in prime is governed by formula pricing.

About SMU’s Scrap Sentiment

SMU’s Current and Future Scrap Sentiment Indices mirror the Steel Buyers’ Sentiment Indices in our flat-rolled steel survey. Our Scrap Sentiment Indices are both diffusion indices. Readings above 50 indicate a more bullish outlook, while readings below 50 indicate a more bearish one.

Sentiment is only one of the indicators we measure. Our scrap survey, like our steel survey, is available only to premium members. If you would like to upgrade from executive to premium, please contact SMU account executive Luis Corona at luis.corona@crugroup.com. If you’re interested in participating in our scrap survey, please reach out to david@steelmarketupdate.com.