In December last year, the ferrous scrap market in Italy experienced a balance between supply and demand, with few transactions completed and slightly declining prices, as highlighted by Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, in its monthly note on raw materials for the steel industry. Scrap collection across the country was scarce and increasingly expensive, making a potential upturn in prices more challenging. Early January has not provided clear indications of market sentiment, but an increase in demand from steel mills could lead to higher prices. Meanwhile, the demand for finished products remains stagnant, although there is a slow capacity to absorb the increases requested by European steel mills.
On the international front, the Turkish scrap market remained stable. However, demand was generally weak, including in the Asian markets, with uncertain prospects for January. Sentiment has improved in the Spanish and French markets.
In the stainless steel scrap sector, according to Assofermet, December was marked by sluggish activity and a weak market, influenced by the holiday season and the globally uncertain economic environment. The outlook for the first months of 2025 remains uncertain and tied to the global economy’s trajectory.
As for pig iron, the market showed persistent weakness, with stable prices and limited activity, partly due to logistical issues faced by Russian exporters. A further price reduction is anticipated. Ductile iron also showed price stability in a dormant market, according to the Italian association’s analysis. Meanwhile, in the hematite cast iron segment, the slowdown in the foundry sector led to minimal demand and reduced purchases. Foundries, with limited visibility on future trends, prefer to keep low stock levels, partly due to high interest rates.
Finally, December confirmed price stability in the ferroalloy sector. “The news of a European Commission investigation into new safeguard measures for ferroalloys is a cause for concern among operators, as a potential reduction in import volumes could distort the market, given that EU production of these alloys is insufficient to meet the region’s demand,” Assofermet commented.