According to Assofermet, the association representing Italian companies active in the trade, distribution and processing of steel, scrap and nonferrous metals, in its usual monthly market note, the Italian ferrous scrap market closed May with a broadly stable trend, after absorbing the €15-20/mt increases recorded at the beginning of the month. Prices have therefore consolidated at high levels, although without any clear new upward momentum.
The market remains affected above all by a complex logistics situation. Scrap yards are largely full, while delivery times to steelmakers have lengthened significantly. At the start of June, a divergence is also emerging between traders, who are seeking to defend the price levels reached, and steelmakers, which appear more cautious and may reduce their production schedules. As a result, the current market balance remains fragile, also due to uncertainty over energy costs and weak finished steel sales, both of which could weigh on scrap demand in the short term.
On the international front, May was marked by greater volatility. In Turkey, the main benchmark market for scrap, HMS I/II 80:20 prices rose to almost $415/mt CFR in the middle of the month, before declining by around $10-13/mt due to slower finished steel demand. The European market proved more resilient, with downward signals mainly limited to Spain. In Asia, by contrast, weakness was more evident, particularly in India, which was also affected by competitive pressure from Chinese steel. Scrap availability in Europe remains limited, while collectors continue to manage their stocks cautiously.
In the United States, the domestic market remained broadly stable, supported by the balance between solid steelmaker activity and a more fluid seasonal collection flow. US deep sea scrap exports to Turkey continue to act as a reference for the international market, with prices in the range of $405-408/mt CFR. For June, Assofermet expects prices in the US to remain broadly stable, while the Turkish market could record further moderate corrections.
In the stainless steel scrap segment, May confirmed a sideways trend, with prices broadly stable and with only limited fluctuations, in line with nickel prices on the London Metal Exchange. The availability of slabs continues to limit upward pressure, offering steelmakers an alternative to stainless scrap whenever scrap prices exceed certain levels. However, stainless scrap supply remains tight, with more evident shortages in some specific grades. On the export side, India is increasingly moving closer to European price levels, while high-speed steels and superalloys continue to be affected by selective demand and limited stock turnover.
As for pig iron, refining pig iron recorded further increases in offer prices, supported by the higher cost of alternative origins, while demand from both steelmakers and foundries remains weak. Steel producers continue to favor, where possible, more competitive alternatives such as direct reduced iron or scrap, while foundries are limiting purchases to their immediate needs. The gradual depletion of low-cost Russian pig iron stocks and the import ban linked to EU sanctions are pushing the market towards more expensive supply routes. Nodular pig iron also remains stagnant, penalized by limited new orders, reduced foundry activity, competition from non-EU suppliers and uncertainty over CBAM implementation.
Finally, in the ferroalloys segment, the market showed a mixed trend. Bulk ferroalloys remain affected by uncertainty linked to the quarterly expiry of the EU safeguard measures: silicomanganese is facing upward pressure due to the exhaustion of import quotas from India, while ferrosilicon remains stable amid cautious demand from foundries. The noble ferroalloys segment is more supported, benefiting from demand for special steels for the defense sector, with prices remaining at historically high and stable levels.