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| Ferrous Scrap |
Prices Projected to Fall Sharply Amid Weak Demand and Pessimistic Sentiment
The ferrous scrap market in the United States is set for another month of declines in May 2025, with market conditions continuing to weaken. The Trend Indicator has plummeted to 25.4, well below the 35-point bearish threshold, highlighting intensified pessimism across the supply chain. Forecasts suggest a 9.5% month-on-month price drop, following April’s 6.2% decline.
This negative momentum is broadly confirmed by market sentiment data, showing 60% consensus among participants that prices are headed lower. Among different segments, buyers remain the most optimistic with a Trend Indicator of 31.7, while brokers and sellers report even lower scores of 20.8 and 23.6, respectively. These figures reflect growing uncertainty and a shared expectation of continued price deterioration.
Inventory Levels Neutral as Market Awaits Demand Rebound
Despite the mounting bearish sentiment, inventory levels are holding relatively steady. The Inventory Indicator stands at 47.5, signaling stock levels are close to seasonal norms. This neutral position suggests inventory won't cushion price drops nor tighten the market, leaving little room for short-term price support.
In summary, the US ferrous scrap market outlook remains weak heading into May, with falling prices, sluggish demand, and neutral inventories defining the current landscape. Unless demand shows a sharp rebound, further price erosion appears inevitable.
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SCRAP
