June 2025 showed a general sluggish trend, with stable or slightly declining prices across all reference raw material markets, according to the usual monthly market report issued by Assofermet, the association representing Italian distributors of scrap.
Italian ferrous scrap market
Ferrous scrap prices in Italy in the first half of June recovered by approximately €10/mt compared to the end of May, but they decreased again in the last week of the month. Both demand and material availability have been scarce due to lower industrial production caused by a struggling economy. The supply of high quality material was also low, with rising prices from sellers. In the meantime, sea deliveries of scrap and billets continued at competitive prices, favored by the weakening of the dollar. The situation in the Italian market was aligned with the international market, and the sentiment for July will be characterized by uncertainty and new attempts to reduce prices by €5-10/mt, according to Assofermet.
International and Turkish scrap markets
The international scrap market - both in Asia and Turkey - showed a substantial stability in June, with a slight price drop in the first half followed by a recovery in the second part of the month. As reported in Assofermet’s note, scrap prices from the United States and the Baltic region to Turkey, have been observed in a range of $340-345/mt CFR. Despite the slight recovery, the international scrap market has not been very active, and the “strong interest in Asian billets has conditioned, and limited, scrap purchases.” The weakness of the scrap market was also influenced by low rebar demand, as well as the further strengthening of the euro against the dollar. Due to the above factors, Assofermet also expects uncertain sentiment for the month of July in the international and Turkish markets.
Stainless steel scrap
"Stainless steel prices in June were an accurate reflection of the month’s market complexities,” the association reports. Despite the approaching holiday period, demand for stainless steel scrap remained sluggish. Italian steel mills have halted purchases, the Indian market showed signs of contraction, and the continuous depreciation of the dollar made stainless steel exports less competitive for European companies. Due to this widespread uncertainty, traders have preferred to hold their stocks rather than sell them at unfavorable prices, causing stagnation in volumes and a further slowdown in business activities. A price drop has also been observed in the superalloy and high-speed steel sectors.
Pig iron
Pig iron demand remained weak in June, with slightly declining prices in the Italian and European markets. Cleared Russian pig iron available at ports is abundant, and it can cover the needs of mills and foundries for several months in the second half of the year. Although the weakening of the dollar against the euro "shortened the price gap between pig iron and scrap," it was not enough to increase pig iron purchases by mills. Negotiations have decreased in the international market, with falling prices both in the Turkish and Asian markets. Import demand for pig iron from both markets has been limited.
Hematite cast iron
June confirmed a slow trend in the foundry sector in Europe, with limited requests and little willingness to plan medium-term purchases. All market players are awaiting the resolution of the tariff negotiations between Europe and the United States, the stalemate in which has blocked international trades. Lastly, slowdowns in intermodal transport due to maintenance works on railway lines may extend lead times.
Ductile iron
Demand for ductile iron ingots from foundries in Europe was weak in June due to reduced production capacity. Prices decreased slightly, mainly due to the weakening of the dollar. However, prices in the US market remained higher than in the European Union, leading producers to prefer the former as a sales market.
Ferroalloys
In the European market, no price change has been recorded for low and high carbon ferrochrome in June, while prices for ferromanganese and ferrosilicomanganese of European origin declined. Ferrosilicon prices were stable. Assofermet observed a negative trend in ferromolybdenum prices.