According to the latest monthly market note from Assofermet - the association representing Italian companies active in the trading, distribution and processing of steel, scrap and nonferrous metals - the Italian ferrous scrap market moved sideways within a context of marked uncertainty in March, affecting both trade and production. Market sentiment was weighed down mainly by new geopolitical tensions, with direct repercussions on energy costs, logistics and plant operations. Against this backdrop, demand from steel mills remained at satisfactory levels, helping scrap prices stay broadly stable and preventing significant downturns. Only operators positioned above the market average applied slight downward adjustments, without materially altering the overall picture.
However, uncertainty remains high regarding the short- and medium-term outlook, particularly with reference to steel mills’ production programs. The recent energy relief measures introduced by the government provided temporary support for industrial activity, leading to an increase in scrap demand and deliveries. Should demand remain stable and price increases for finished products be effectively implemented, the market could see a recovery in scrap prices, also considering the limited availability of material.
On the international front, Turkey triggered an upward movement in scrap prices in the second half of March, with total increases of around $20/mt. In Europe, Spain reacted more quickly, recording two consecutive increases of around €10/mt, while in the other markets across the continent weaker demand limited price movements. In Asia, the picture remained more uneven, with Pakistan following the Turkish trend and India seeing more limited increases.
In the stainless scrap segment, March showed a two-phase trend, with an initial upward movement followed by a slight correction in the second part of the month. Prices then stabilized below peak levels, though without pointing to a bearish reversal. Supply remains limited, while demand is stable, in a context also influenced by volatility in the euro-dollar exchange rate.
As for basic pig iron, March brought a further increase in dollar-denominated prices, which was not fully accepted by European steel mills, which still preferred scrap in order to contain procurement costs. The picture was more favorable in the United States, where the new price levels found greater acceptance.
In the hematite pig iron segment, trading activity slowed, with foundries operating on limited volumes and short-term schedules, also in view of Easter-related stoppages. Spheroidal pig iron also recorded limited activity, though the few transactions concluded pointed to the first signs of firmer prices, supported by higher costs at origin, rising ocean freight rates and the impact of the CBAM mechanism.
Finally, the ferroalloys segment maintained a broadly stable trend, amid subdued demand and a cautious approach by market operators. One of the main points highlighted was the contraction in European ferrosilicon production, largely due to rising energy costs.
Overall, the picture outlined by Assofermet remains one of caution, amid macroeconomic uncertainty, logistical criticalities, geopolitical tensions and adjustment to CBAM.