SMU Scrap Survey: Current Sentiment rises, Future Sentiment dips

SMU’s Current Sentiment Index for scrap buyers rose four points to +84 this month vs. June. This rebound brings the index even with May and two points below the highest reading of the year so far of +86 in April.

Future Sentiment Index

At the same time, SMU’s Future Sentiment Index for scrap slipped two points to +84 in July. This puts it at the same level it registered from December of last year through March 2026.

What’s going on?

The fact the Current Sentiment Index rose slightly from last month is probably due to the perception among the scrap trade that prices would dip in June. But they, in fact, held sideways. Scrap market players may now feel prices can hold on to their gains or even improve.

The scrap trade sees steel demand as quite solid and demand for their product is brisk. All this supports positive sentiment.

There is some regret in the scrap industry over the lack of upward pressure on domestic scrap prices, given the recent escalation in steel prices.

Some participants say they are not really sharing the bounty the steelmakers are receiving. This is mainly because of the industry’s efficiency.  

The US recycling business produces an enormous amount of material. We do not export as much these days, and the lack of export tonnage has kept domestic prices in check. Meanwhile, the tariffs on steel imports have played a role in lessening the demand for scrap overseas.