FastMarkets’ latest monthly outlook for the ferrous market in the US suggests scrap prices are under pressure amid slowing demand.
The FM outlook for May 2025 suggests significant downside pressure, largely driven by weakening demand conditions.
‘The Trend Indicator has dropped steeply to 25.4, well below the 35-point threshold indicating strong bearish sentiment, suggesting a high likelihood of falling prices,’ FastMarkets reports.
‘Forecast models project a month-on-month scrap price decrease of 9.5%, following a 6.2% decline in April.
Price erosionAmong market participants, buyers are the most optimistic with an indicator of 31.7, while brokers and sellers reported lower responses of 20.8 and 23.6 respectively, which is seen as reinforcing the widespread expectation of price erosion.
US inventory levels are said ti be near neutral at 47.5, indicating that stockpiles are in line with typical monthly averages and are unlikely to provide any significant buffer against downward pricing pressure.
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