Assofermet reports stable prices after summer lull - unstable scrap market

The Italian scrap market showed only slight price declines in July, followed by general stability throughout August and into early September. Many operators opted for early closures in response to weak demand and limited visibility. While some traders pushed for price increases after the summer break, steelmakers showed no willingness to follow.

Ferrous scrap availability remains tight due to reduced industrial output. However, mills re-entered the market with adequate inventories and continued to source competitively priced semi-finished products, such as billets and slabs, from China and the Middle East—supported by a weak dollar.

Internationally, the Turkish scrap market remained stable with limited volumes, save for a short-lived uptick in late July. Similar muted conditions were observed across Asia. In Europe, Germany saw reasonable demand in July but a sharp slowdown in August, while France and Spain experienced extended summer shutdowns and minimal trading activity.

In the US, finished product price weakness is expected to push scrap values down further—by USD 10–20/t. Market uncertainty persists, driven by weak finished steel demand, exchange rate volatility, and ongoing geopolitical tension.

For pig iron, prices remained largely flat or slightly down. Availability was good, including alternatives to Russian-origin material. While demand in Italy remained sluggish, interest across Europe was somewhat stronger, though price expectations continued to diverge. In Turkey, some volumes of Russian pig iron were traded at marginal discounts. US buyers showed interest in Brazilian material around USD 400 FOB.

In stainless scrap, order volumes remained low as foundries shut down earlier than usual for summer and awaited clarity on US-EU tariff negotiations. Although an agreement was reached in late August, uncertainty remains around its economic impact. Intermodal transport disruptions also added to delivery delays.

Foundries kept inventories minimal, with closures lasting three to four weeks in many cases. Activity in July and August was limited, with prices largely stable. Early September saw little improvement in order volumes despite solid material availability from Russia, Ukraine, and Brazil. Brazilian offers are currently seen as particularly competitive.

In the ductile iron market, buyers remained cautious and limited transactions to immediate needs. The broader climate of low production capacity and poor visibility continues to weigh on planning and restocking decisions.

Bulk ferroalloy prices rose noticeably in July and early August on speculation over EU safeguard measures but reversed course at the end of August and early September as market sentiment corrected.

Source: Assofermet, Photo: Fotolia