The index for finished steel price development rose to 75, indicating continued expectations for increases in the month to come (an index of 50 indicates stability).
Each respondent group in the survey of US producers, distributors, traders and end-customers was bullish about June finished steel prices. Traders again were the least bullish, posting an average response to the finished steel price development index of 60, unchanged from May. Mill participants and distributors both recorded 75, while end users were the most bullish at 87.5.
June average raw material price sentiment was the highest at 79.8, up from May's 63.9. Mill and distributor respondents each recorded index levels of 75, while end users and traders were even more bullish at 83.3 and 85, respectively.
"I think we're about at the peak and as mills continue to catch up, imports increase, and service centers unwilling to restock the shelves at ridiculous prices on raw materials, I believe domestic scrap prices will be up in June," said one distributor. "Maybe iron ore has peaked."
Expected changes to raw steel production and inventory levels were mostly muted, coming in at 56 and 51.2, respectively. Most notably, mills and end users were more bullish on expected raw steel production, posting 62.5 each. Meanwhile, mills were most bearish on expected finished steel inventory level changes, recording a 37.5.
