June ferrous scrap outlook looks sideways to negative

Current scrap market sentiment is again divided as we enter the summer month of June. Most participants are sticking to sideways positions, while a growing number of players are more pessimistic about pricing, mainly on shredded and HMS.

Many dealers are indicating obsolescent scrap flows are good but not great. However, there does not seem to be any concerns about supply. The main concern is about the increases in freight caused by the implementation of fuel surcharges. Dealers are saying their mill customers are not acknowledging this while they have installed increased fuel surcharges for steel they sell.