According to the latest monthly market report from Assofermet, the association representing Italian companies active in the trading, distribution and processing of steel, the Italian ferrous scrap market ended October with lower prices and mounting difficulties in delivering material to steel mills. The association's short-term outlook remains negative despite limited material availability and a recovery in international prices at the end of the month.
Ferrous scrap
The main difficulties concerned mills' acceptance of deliveries. Particularly in the last week of October, scrap collection, recovery and processing facilities faced widespread obstacles, culminating in “a complete inability to deliver cargoes because receiving steel mills were unavailable to accept them”.
Against this backdrop, prices fell by €10-15/mt in the final two weeks of the month, weighed down by reduced electric arc furnace production, with repercussions for contracts expiring in November. Steel mills are reported to be seeking further reductions, suggesting that holiday shutdowns could start as early as mid-December and last longer than expected. According to Assofermet, this could lead to tighter restrictions on deliveries. Nevertheless, scrap traders are seeking to defend the late October price levels, supported by weak domestic collection volumes and upward signals from the international market.
In Turkey, buyers managed to lower scrap purchase prices by $7-10/mt during October, particularly in negotiations with European suppliers, who benefited from the stronger dollar. Trading in US origin material, meanwhile, largely ground to a halt. In the final week of the month, however, renewed purchasing needs among Turkish steel mills allowed prices to recover their earlier losses.
Demand also showed signs of picking up in Asia towards the end of the month, accompanied by modest price increases that have yet to consolidate. In North Africa, Egypt almost doubled its import volumes to support domestic production. However, the region faces concerns over the European Commission's draft regulation regarding a ban on scrap exports to non-OECD countries from May 21, 2027, prompting a reassessment of material sourcing strategies.
Weakness prevailed in Europe, with price declines averaging around €5/mt. In Germany and France, Assofermet reported decreases of approximately €1-5/mt amid low steelmaking consumption, limited material availability and logistical difficulties caused by low water levels of rivers.
Stainless steel scrap
Stainless steel scrap purchasing volumes remained very low in October. The imminent arrival of imported slabs reduced mills' urgency to secure material, while prices, initially stable, gradually declined in the second half of the month. Limited generation of manufacturing scrap and traders' decisions to hold stocks to protect margins helped curb the decreases.
India remained an important outlet for surplus volumes, although offers there also followed the downward trend. The association expects purchases to remain limited to essential requirements until early 2027.
Pig iron
The basic pig iron and direct reduced iron segments also remained weak as steel mills focused on reducing costs and inventories. Brazilian pig iron deliveries continued regularly, while lead times for Ukrainian material remained uncertain.
Hematite pig iron, meanwhile, maintained its previous modest price gains, supported by higher purchasing costs for non-EU material and increased freight costs, while inventories remained low.
Ferroalloys
Finally, demand for bulk ferroalloys remains weak, but prices are stable or edging up due to energy and logistics costs, as well as production difficulties caused by adverse weather in Asia. For noble ferroalloys, Assofermet reported price increases already implemented, the possibility of further rises and difficulties sourcing certain products.
