In April 2025, the local scrap market in Italy showed a strong negative trend. As Assofermet - the association representing Italian distributors of scrap - reported in its usual monthly note, the beginning of the month was accompanied by cautious optimism, but this quickly faded, especially in the last two weeks, when prices dropped by €30-40/mt. Steel mills limited purchases, anticipating closures due to the numerous public holidays, which significantly reduced production and commercial activity. “The sentiment for May remains negative,” Assofermet stated.
The Italian ferrous scrap sector, according to Assofermet’s analysis, was impacted by the drop in international prices, particularly in Turkey, and by sea imports from non-EU countries, which affected domestic demand. Italian steel mills, already dealing with weak orders and reduced margins, continued to operate at limited rates. The slowdown in the steel market continued the trend that was already evident in the previous month.
On an international scale, the situation was also bleak: in Turkey, scrap prices saw a significant contraction, although this seemed to stabilize in the last few days of the month. In Europe, reductions were observed in both Spain and France, and in the United States, pressure on domestic sales led to similar declines. The uncertainty surrounding the evolution of customs duties remains a critical factor for the prospects of May.
According to the association, the stainless steel scrap market was strongly impacted by the collapse in nickel prices, which generated widespread downward pressure and paralysis of transactions. The sharp fluctuations in the euro/dollar exchange rate further complicated international negotiations. The alloy sector, including high-speed steels, also saw a further decline, confirming a context of weak demand and great uncertainty.
Despite the availability of alternative pig iron and the depletion of Russian quotas, interest in pig iron remained low in April, partly due to the long holidays and low scrap prices, which also negatively impacted HBI (Hot Briquetted Iron). Assofermet noted that, on an international level, demand is weak due to the fall in scrap prices and new tariffs on countries such as Brazil. Russian offers on the Turkish market remain low ($330-350/mt CFR), but demand is scarce, prompting producers to include other products to slow the price decline. In the United States, the impact of tariffs remains uncertain, but a future price drop of about $10-20/mt is expected.
The demand for hematite pig iron from foundries has also decreased significantly. Production resumed at slow rates, and it will take time to determine whether the slowdown is temporary or a sign of a deeper crisis. Global uncertainty and tariffs are hindering new projects, while on the logistics front, there have been no significant delays due to the low volume of transactions.
Transactions for ductile iron were also limited due to the low order levels and long holiday breaks. The few requests for pig iron only covered immediate needs, with slight price increases due to the scarcity of Russian supplies, but for qualities that were not ideal for foundries. Despite a good offer, traders are struggling to plan new purchases due to the uncertainty in the sector.
Finally, the ferroalloys market remained almost stable for ferrosilicon, while slight decreases were recorded for manganese alloys. A modest increase was observed for the two variants of ferrochrome.