According to Assofermet, the association representing Italian companies active in the trading, distribution and processing of steel, scrap and nonferrous metals, in its usual monthly market note, the Italian ferrous scrap market closed June with a clear reversal of trend, interrupting the stability that had characterized the first part of the year. After the first part of the month remained supported in terms of both volumes and prices, the market picture changed rapidly in the final days of June, affected by the worsening trend in the international finished steel and scrap markets.
The slowdown in downstream steel demand pushed steelmakers to sharply reduce their activity and scrap purchase volumes, triggering downward pressure on new contracts. According to Assofermet, the reductions proposed were in the range of €20-30/mt compared to previous highs, a sharper decline than market operators had expected. Despite the negative sentiment, delivered volumes remained significant during the month, partly due to the acceleration of sales by some producers of new production scrap, which moved to liquidate stocks before a further decline in price lists.
At the start of July, the market is under pressure. Steelmakers are facing very weak finished steel demand, high stock levels and already scheduled production stoppages, factors that have almost brought purchases and unloading activity to a halt. On the supply side, material availability is not lacking, but many traders are struggling to place accumulated material in a market where prices are now clearly oriented downwards.
The international picture also remains negative. In June, the Turkish market, the main reference for scrap, recorded decreases of $25-30/mt, penalized by weak demand and by the lack of alternative markets able to support quotations. In Europe, Spain recorded a decline of around €20/mt, while France saw a substantial rollover of contracts. Flows from Germany to Italy were slightly lower than in May, partly due to the slowdown at some Italian plants linked to the automotive supply chain.
For July, Assofermet indicates the continuation of a weak phase, with prices expected to decline further, although operators remain cautious regarding the size of the next corrections. Seasonal factors are also weighing on activity, with several Italian steelmakers slowing their production rates and summer shutdowns starting in Germany.
In the stainless steel scrap segment, June marked a change of direction after the previous stability. The second half of the month saw a downward correction in quotations, driven by the decline in nickel prices on the London Metal Exchange and by the prospect of production cuts by steelmakers in July. However, the shortage of available material continues to limit the risk of sharper declines, especially for rarer grades. On the export side, India absorbed significant volumes of European material in the second half of the month, before adopting a more cautious stance in the final week.
As for pig iron, the Italian market remains characterized by weak demand and purchases limited to essential needs. In the refining pig iron segment, international quotations remain stable at high levels, but interest from both steelmakers and foundries is limited. The greater competitiveness of scrap, following the recent price declines, is also pushing some operators to replace pig iron with scrap where technically possible.
In the hematite pig iron segment, June confirmed the slowdown already seen in May, with few contracts and minimal volumes linked to reduced production schedules. For nodular pig iron, meanwhile, prices recorded further increases, although less pronounced than the rises already absorbed at the beginning of the year. Critical issues remain linked to limited supply channels and to the competitiveness of European foundries, which continue to be penalized by sanctions, CBAM requirements and high energy costs.
Finally, in the ferroalloys market, June showed a mixed trend. Manganese alloys were the most dynamic segment, supported by advance purchases ahead of the expiry of European quotas and the entry into force of the new EU safeguard measures on July 1. Ferrosilicon, on the other hand, entered a phase of partial adjustment, with a slight decline in prices at the end of the month, while ferrochrome remained broadly stable at high levels, in a context of limited spot trading and cautious demand.