SMU Scrap Survey: Sentiment Indices reach record-highs

Written by Ethan Bernard & Stephen Miller

SMU’s Current and Future Sentiment Indices for scrap rose in April, pulling even with each other for the first time, according to the latest data from our ferrous scrap survey.

Current Sentiment Index

SMU’s Current Sentiment Index for scrap jumped four points from March to +86 this month. This is the highest level of Current Sentiment we’ve seen since we started the survey in February of last year.

Future Sentiment Index

Meanwhile, SMU’s Future Sentiment Index was also +86 in March. It had been stuck at +84 for four months. This equals the highest Future Sentiment reading since the survey began, last seen in March 2025.

What’s going on?

The main factor responsible for the increased sentiment reading is the improved melt rate at US steelmakers. This is creating increased scrap demand for all grades. The price increases for new steel orders have also added to sentiment, as mills should be willing to pay higher prices to procure their monthly needs.

The export scrap market has recovered almost to the point where coastal scrap may begin to stop flowing into the interior. In addition to this, pig iron prices have increased to the point where using domestic scrap in its stead is a true money-saving play. Dealers seem to sense this market has some staying power.

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. They are 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.schollaert@crugroup.com.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.