The ferrous scrap market in Italy was characterized by upward movement in March, but uncertainties remain. As Assofermet - the association representing Italian distributors of scrap - reported in its usual monthly note, the third month of the year continued to record a general shortage of scrap since manufacturing companies reduced their operational pace, hence producing less waste.
This scenario generated a lack of scrap availability on the one hand and a widespread increase in scrap prices on the other, as well as a struggle to obtain enough volumes to cover mills’ supply needs. At the same time, mills continue to report difficulties in selling finished products.
During the first days of April, March scrap price levels seem to have consolidated, but producers have reduced their demand, leading traders to assume a stable month lies ahead, also in view of the Easter holidays.
In international markets, Assofermet reported increases of about $20/mt in Turkey’s import prices in the first 20 days of March. These increases then stabilized towards the end of the month. The situation in other European countries was similar to that in Italy, both in terms of scrap demand and scrap prices.
Market variables are many and often unpredictable, which makes it difficult to project a defined forecast for April, Assofermet reported.
In the stainless steel scrap market, the situation was not much different. The main Italian mills are still working with reduced margins and finished steel orders struggle to arrive. This translates into slower production and reduced acceptance in deliveries of stainless steel scrap, which, however, remains scarcely available. "This lack of material, paired with a weak demand from steel mills, has created a balance that is keeping [stainless steel] scrap prices stable, despite the general volatility," Assofermet explained. But again, the short-term outlook remains uncertain.
As for other raw materials, pig iron saw sharply higher prices after the exhaustion of the Russian quota in the EU. At the moment, Italy is mainly importing pig iron from Ukraine, which is about $100/mt more expensive compared to the Russian pig iron offered in markets that do not impose tariffs on it.
Foundries, as well as steel mills, reported modest orders in March. Therefore, supplies of ductile iron have also been low and characterized by short lead times. Ductile iron prices are also rising for various reasons.
Finally, in March the ferroalloys market recorded stability for silicomanganese and a downward correction for ferromanganese, ferrosilicon and ferrochrome.