Substantial price stability and material scarcity are the two main factors that characterized the Italian scrap market in November, according to Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products. In its latest press release the association said, “The holiday shutdowns are important and will therefore affect demand in the first quarter, which appears uncertain at the moment. The announcement of increases in finished products by steel mills portends a recovery partly in the first quarter, but much more likely in the second quarter of 2023.”
As for international ferrous scrap, prices in November were subject to a reduction in quotations first and then a rise. Turkish prices moved down in the first part of November, but then rose by $30-40/mt in the second part of the month.
In Europe, on the other hand, demand has been steady and price movements, except for Spain, have been more limited. Some difficulties remain. “Production cuts within Europe continue to impact the availability of scrap and particularly of high-quality material,” said Assofermet, adding, "The difficulty of finding small ships remains with consequences on freight rates, which continue to rise. The strengthening of the dollar is again affecting prices in euros.”
Also scarce is stainless scrap, for which there were price increases and good demand in November, while for now in December prices seem to be mostly stable.
According to Assofermet, non-European markets have delayed aligning themselves with Italian quotations, resulting in reduced export volumes.
Refining cast iron was also stable in November, with good demand and availability.
Hematite pig iron prices in November and early December were also stable, with slowdowns in demand. “Purchases still confirmed good production plans, but there is an emerging trend to use pig iron stocks that had built up in previous months, rather than proceeding with new orders,” the association said. Energy costs are still a problem, which in the winter period brings more caution and impacts the choice of production stoppages, especially as the end of the year approaches. “Some cracks are reported in the regularity of downstream demand that may affect production management, and there are still some difficulties in passing on higher prices to end-users amid price increases linked to energy and raw material but also to the prices of other products.”