According to Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, Italian steel mills still have high stocks of finished products. “Everyone needs to be cautious about the upturn as this availability could also affect the market trends in September,” said Assofermet.
In the first part of June, Italian domestic scrap prices fell again, partly offset by low demand and limited scrap availability. According to Assofermet, this reduction allowed many plants to limit sales and increase their stocks in the hope of a market upturn, a strategy that in some situations led steel mills to raise prices by about €10-15/mt in the latter part of the month. “This slight turnaround at the moment, however, has not had a real impact on the recovery of purchase volumes,” the association commented.
Internationally, the month under consideration was characterized by little trade, the result of low demand from users, with limited price changes, and general stability.
In the Turkish scrap market, there was a slight rise in prices in the first part of the month and an almost complete halt in transactions in the second (due to holidays), according to Assofermet’s analysis. The price changes could be attributable to adjustments between the level of domestic and imported scrap. Steel mills across Europe also continued to reduce production in hopes of meeting real demand with quick delivery times.
In the stainless scrap segment, June proved to be a month with reduced quantities and slightly declining prices. “On the international front, demand was good and continues to be good overall, with quotations in parallel aligned with the international market,” said the association. However, new legislative requirements regarding exports have cooled negotiations due to the inability of end consumers to accept the requested deadlines.