Italian scrap prices rise modestly as energy costs curb demand

Italian ferrous scrap prices increased by €5-15 per tonne for medium and higher grades in September, but high energy costs and production stoppages limited further gains, according to the latest market report from Italian metals trade association Assofermet.

Demand and scrap availability remained at acceptable levels following a relatively slow post-summer restart. Some steelmakers that had reduced purchasing prices sharply in July and August found themselves short of inventories by mid-September and subsequently raised prices to attract material and complete contracts. Turkish buying activity also supported the market.

The upward momentum weakened later in the month, however. Assofermet said energy costs reached the equivalent of around €60/t for some steel plants, prompting mills to reduce shifts, stop equipment or suspend production for entire weeks. Weak sales of finished steel further reduced domestic scrap demand.

As a result, some mills temporarily stopped accepting deliveries as their scrap yards filled. This left traders holding material purchased at higher prices while also facing increased diesel and energy costs. Assofermet described the outlook for October as ranging from stable to moderately optimistic, with further scrap price increases possible if steel production recovers.

Turkish scrap prices gain $25-30/t

International scrap markets strengthened during September, led by Türkiye, where prices increased by $25-30/t. Assofermet attributed the rise partly to improving demand but also to sharply higher freight costs.

Longer shipping routes around Africa due to geopolitical tensions have reduced vessel availability and increased transit times, while insurance and war-risk premiums have risen on routes including the Black Sea and eastern Mediterranean.

Asian scrap markets also moved higher, although gains were more limited because of weaker demand. European developments were less uniform, with increases concentrated towards the end of September and considerable differences between countries and individual buyers.

Stainless scrap demand remains weak

Demand for stainless steel scrap remained subdued among Italian and other European mills. Buyers continued to limit purchases, partly in anticipation of substantial imports of foreign billets before the end of the year.

Despite lower nickel prices on the London Metal Exchange, stainless scrap prices recorded a modest technical rebound. Assofermet attributed this primarily to suppliers holding back material rather than to a recovery in industrial consumption.

India remains an important export market for European stainless scrap, absorbing volumes that would otherwise struggle to find buyers domestically. Assofermet expects exports to remain an important source of support during the final quarter of 2026.

Pig iron market stable amid high freight costs

Pig iron prices were broadly stable at origin in September, while European buyers continued to face pressure from freight costs and a weaker euro.

Brazilian basic pig iron remained at around $440-450/t FOB, according to Assofermet. Freight rates from Brazil rose from $38/t to approximately $50/t, increasing delivered prices in Europe. US pig iron imports, meanwhile, increased by 50% in September amid substantial shipments from Brazil and Ukraine.

Black Sea supply remains severely restricted, making Brazil an increasingly important source for European buyers. Foundry demand remains stable but structurally weak, while uncertainty surrounding CBAM is also complicating purchasing and inventory decisions.

The European ferroalloy market showed a mixed picture. Bulk alloys, particularly manganese and silicon products, remained weak as high energy costs constrained steel production. Ferrochrome and speciality alloys performed somewhat better, with modest price increases supported by demand for special steel products and tighter supply management in Europe.