The Italian scrap market in February was stable. This is what emerges from a press release by Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products.
"Over the past week, the scarcity of available material, together with rising quotations in Turkey after an initial halt due to the aftermath of the earthquake, led to price increases for many types of scrap," the association said. "Scrap shortages at merchants' warehouses and distressed collection due to production declines more generally will help maintain quotations or could even lead to an uptick in March."
Transportation costs, however, remain a concern as before.
In the international market, the initial stability turned into a rise in quotations due to increased demand from the Turkish market, only to be interrupted by the disastrous earthquakes, and, towards the end of February, to record new significant increases to a high of $40/mt from the lows recorded during the month.
"European markets, while positive overall, were characterized by lackluster demand and limited price changes," Assofermet added. Few purchases were made in Germany, not only because of quotations but also because of delivery difficulties, while in France there was a slight price increase of about €5/mt and demand appeared substantial mainly because of the shortage of material. Compared to the level in the Italian market, a difference of €15-20/mt remains. In Spain, on the other hand, there were peaks for shredded, but these were not met with consumer interest, confirming the mismatch between supply and demand.
February was also a stable month for stainless scrap, with not particularly high quantities.
"An attempt to reduce prices took place in the second half of the month, which was not particularly successful, even with the new scrap available, which was not particularly abundant," the association said, adding, "December stocks remain at some plants in anticipation of a price increase, which at the moment has not yet occurred."