According to Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, the modification of the law in Italy extending the prior notification period for scrap exports is impossible to apply, noting that decarbonization is a common challenge for the entire steel supply chain, and the association has therefore requested a meeting with the Italian steel producers’ association Federacciai to address the issue.
The deadline by which full information must be notified to the relevant ministries - mandatory for all persons intending to export from Italy, directly or indirectly, outside the European Union, "critical raw materials" such as ferrous scrap - has been increased from twenty to sixty days. In addition, the end of application of the indicated measures has been extended by three years, from December 31, 2023, to December 31, 2026.
The problems associated with this change, according to Assofermet, are to be found first in the difficulty of predicting the date of export due to numerous variables. "It should also be noted that the anticipation of the timing affects a key element of these transactions, making their scheduling with the foreign counterpart more complicated, to the point of preventing the realization," the association added. "International trade is not ready to agree on a price 60 days before, but at most 20,” Assofermet said.
Moreover, according to Assofermet, when Italian steel mills slow down or suspend scrap purchases, it is impossible to make regular deliveries, adding, "In order not to incur violations of the authorization requirements regarding the maximum permitted stockpiles, the surplus scrap lying at the authorized plants of companies in the sector must necessarily find alternative routes."
The Italian steel industry is covered not only by the EU’s unused scrap supply, but also by non-EU countries that Italian steelmakers resort to in favorable market moments to improve their competitiveness.
Assofermet said it hopes for government intervention for the purpose of withdrawing the measure under review or at least restoring the 20-day period, reintroducing, in any case, also the expiration date of December 31, 2023. The association has therefore requested a meeting with Federacciai with the aim of finding a shared path, highlighting the willingness to discuss the topic and the awareness that decarbonization will be a common challenge, where the sector of collection, recovery and recycling of ferrous scrap will play a key role in line with the steel industry.