SMU Scrap Survey: Current Sentiment falls as Future Sentiment increases

SMU’s Current Sentiment Index for scrap fell four points to +80 this month from May. This is the second-lowest reading in 2026 since it stood at +73 in January.

Future Sentiment Index

At the same time, SMU’s Future Sentiment Index for scrap increased four points to +86 in June. This equals the highest reading so far this year. It was last that high in April.

What’s going on?

These two readings about scrap sentiment are understandable by most industry insiders. It says a lot about how the scrap markets look to be trending.

The reduced Current Sentiment in June stems from the view that June is usually a down month for prices. There is usually an overhang of secondary grades in June.

This year, it was especially perceived this way due to the long and severe winter. Steelmakers and their brokers were talking down the market, and dealers may have thought soft sideways, which they were tired of hearing.

However, scrap demand trumped all this, and when industry players looked into the near future, sentiment improved.

The scrap supply is likely to wane as we go into midsummer, for both obsolete and industrial grades. This should spell increased price tags for scrap at some point. Many see electric-arc furnace (EAF) expanding capacity starting to spur demand, and they are hoping it will be sustainable.