SMU Scrap Survey: Sentiment Indices fall in May but remain high

Written by Ethan Bernard & Stephen Miller

SMU’s Current and Future Sentiment Indices for scrap both fell in May, though they remain at elevated levels, according to the latest data from our ferrous scrap survey.

Current Sentiment Index

SMU’s Current Sentiment Index for scrap slipped two points from April to +84 this month. Even with the decline, this is our second-highest reading after last month.

Future Sentiment Index

Meanwhile, SMU’s Future Sentiment Index for scrap fell four points to +82 in May. This is the first time Future Sentiment has dipped below Current Sentiment since our survey began in February 2025.

What’s going on?

The scrap market in May is usually bearish as mills often enjoy a surge of supply as spring brings out more scrap. This year, the market has seen an increase in demand domestically and offshore. It may be keeping sentiment at these relatively high levels.

In May, thus far, strong sideways pervades the market. Obsolescent grades have traded sideways throughout the US. Prime grades, which were forecasted to be stronger, have had mixed results. Several buyers have insisted on sideways, yet others have offered prices up $10 per gross ton (gt), and there have been others who have bought at $20/gt higher than April.

So, sentiment remains high as prices look more stable at elevated levels.

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.