In May 2025, the Italian scrap market experienced a fluctuating trend. According to the latest monthly report from Assofermet – the association representing Italian scrap distributors – the first half of the month saw another drop in prices, by approximately €25-30/mt, while the second half was marked by an unexpected rebound, with prices increasing by €5-10/mt. This recovery was partly supported by firmer pricing in Turkey and concerns raised by several steel mills regarding the actual availability of scrap. The ongoing shortage of material from demolition and construction sites – a recurring issue since the beginning of the year – continues to weigh on the market’s overall balance.
This modest upturn has generated cautious optimism among market operators, although the general outlook remains unclear. Logistical difficulties, particularly regarding shipments from southern to northern Italy, are also contributing to market uncertainty, in a context of weak demand for finished steel and construction materials.
Expectations for June remain uncertain. Demand could be affected by the availability of semi-finished products imported from non-EU countries, possible early plant stoppages for maintenance, and the risk of further energy cost increases.
On an international level, market sentiment also remained fragile. In Turkey, following an initial recovery of $15-20/mt in scrap quotations, prices weakened again in the second half of the month due to sluggish demand and limited support from finished steel markets.
A similar trend was observed in Europe. In Spain, France, and Germany, demand remained weak and prices fell compared to April levels. In the US, the domestic market came under general downward pressure, with expectations for June divided between stable trends and possible further drops of up to $20/mt.
According to Assofermet, the stainless steel scrap segment continued to suffer from the lingering effects of April’s sharp drop in nickel prices. Scrap quotations remained under downward pressure, with weak demand and overall buyer caution. Strong fluctuations in the euro-dollar exchange rate also complicated international transactions, limiting visibility and discouraging commercial planning.
The pig iron segment remained weak both in Italy and internationally. The relatively low scrap price continues to limit interest in pig iron and HBI. In the global market, US tariffs on material from Ukraine and Brazil contributed to a slowdown in demand, with prices stabilizing at around $335/mt CFR in both Turkey and India. In Europe, some foundries reported difficulties in adapting to Ukrainian pig iron as a replacement for Russian-origin material, while overall demand remained low.
The ferroalloys market showed a largely stable trend in May. According to Assofermet, slight decreases were recorded for FeSiMn and FeMn prices, while ferrosilicon prices remained unchanged. In contrast, high-carbon ferrochrome posted a modest increase, while the medium-carbon variant was stable.