The Italian scrap market in April has been influenced by various holidays, with sluggish demand and a drop in quotations at the end of the month, while May began with uncertain sentiment in the market, as reported by Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products in a new press release. The causes are to be found in the downsizing of production schedules, particularly those of rebar producers with poor order books.
"The difficulty in having a regular continuity of deliveries to steel mills remains in part due to production stoppages due to technical or maintenance problems. Moreover, despite the fact that the stock levels at trade warehouses appear to be low, there is room for some concern about a possible drop in quotations in May," the association wrote. It went on to state, "From the beginning of the year to date, there has been a market characterized by continuous ups and downs: an uncomfortable and unwelcome scenario, but one that now seems to be a constant with which we have to live."
Sentiment was also wait-and-see in the international scrap segment in April. The European markets, however, though with less than excellent demand, were characterized by greater price stability than in Turkey and Asia, basically due to limited supply, in particular as regards shredded scrap.
The downward trend then accelerated in the latter part of the month.
As for stainless scrap, April was a month characterized by low quantities, both in production and consumption.
In early May, steel mills are forecasting further price declines. "The situation is in contrast to scrap availability that remains at low levels," commented Assofermet, adding, "It will be important to see what the market reaction will be."