Uncertainty is the most appropriate term to describe the market in August and in these early days of September, said Assofermet, the association representing Italian distributors of scrap, raw materials and steel products, in a press release.
As far as the Italian scrap market is concerned, the glimmer of hope of late July and early August did not change the price scenario that appeared rather stable and with only a few transactions. The closures of some steel mills and the impact of high energy prices continue to affect the market.
As regards the international scrap market, Assofermet commented, “The Turkish push has generated uneven reactions in the rest of Europe. The Spanish and Scandinavian markets have followed the Turkish price trend with rapid purchases and, in some cases, even slightly higher quotations. The rest of Europe reacted in a more subdued way and not immediately.” The season and the energy costs also influenced the international market, but in a less significant way than in Italy. “Complicating the scenario is the further weakening of the euro, wiping out the advantage of purchases from Asian countries, particularly China,” Assofermet noted.
In August, the basic pig iron market remained stable: with good supply and availability and price diversity depending on the origin, Assofermet stated. The restart after the summer break has been slow, and downturns are also reported for hematite pig iron, although the price difference remains. The order book for ductile iron is good, but the variable energy costs and their evolution make production planning (and purchasing) quite difficult. Meanwhile, the weakness of ferroalloy prices continued basically due to the long shutdowns of steel mills.