In July 2024, scrap market participants expect significant downward pressure on scrap prices due to lower demand, as indicated by a trend indicator of 41.7. This reading suggests a bearish sentiment in the market, falling below the neutral level of 50. This translates to an expected scrap price change for July of -3.8% month-over-month, pointing to another month of price decline.
The trend indicator consensus was remarkably high at 61%, highlighting a high agreement among surveyed participants about the declining market conditions.
The sentiment across different market sides varied, with buyers showing the most pessimistic outlook at a trend indicator of 34.4, followed by brokers at 37.5. Sellers, on the other hand, exhibited a relatively more optimistic view, with a trend indicator of 53.2.
This is a change from last month’s outlook, where market participants across the board were aligned on their outlook.
On average, inventory levels stood at 45.3, indicating slightly lower-than-average stock levels. Nonetheless, the driving factor for the expected downward pressure, according to those surveyed, is the general lower demand.
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