After a brisk month with rising prices and good demand, sentiment in the Italian scrap market in early April is less positive and availability is low:
After a brisk month with rising prices and good demand, sentiment in the Italian scrap market in early April is less positive and availability is low: “No significant reductions are expected,” said Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, in a press release. “It is necessary, however, to point out that steel mills, especially producers of wire rod and rebar, have seen their sales orders fall and difficulties in sustaining prices, probably due to uncertainties about the developments of the NRRP [Italy's National Recovery and Resilience Plan], confirming the fact that several construction sites related to this plan have stopped and numerous tenders for future works have been lost,” Assofermet stated.
In the international scrap market, March saw a bullish trend: “In the Turkish market, there was a consolidation of the price increases of the end of February with peaks towards the middle of the month, thanks to good demand, while the last ten days of the month were characterized by a reduction in quotations, mainly due to interruptions in purchases by Turkish steel mills,” Assofermet said.
The same trend was seen in the Asian markets, albeit with smaller price changes.
In Europe, the bullish trend continued throughout March with a slight slowdown in negotiations at the end of the month, but this did not lead to price reductions.
Quantities of stainless scrap were reduced in March, both in terms of production and consumption. “The trend in quotations was stable overall for most of the month, while there was a slight reduction in the last ten days.”
Internationally, there were small periods in which exports were closed, with quotations tied to the euro/dollar exchange rate trend. “Demand overall has not been strong, and so prices have not recorded any particular spikes,” Assofermet pointed out.
Dollar increases in March for cast iron were largely absorbed by a euro/dollar exchange rate that saw a further weakening of the European currency. “The price differential between the various cast iron producers (Russian, Ukrainian and Brazilian) persists, where the highest quotations were recorded in sales to the US market,” reads the released note. “Material availability remains good, thanks to the fact that demand from steel mills, on the whole, has not been particularly important,” Assofermet stated.