The summer in the Italian scrap market ended without major shocks, though the trend reflected the sector’s fragility. In July, the market saw further declines of €5-10/mt, not always accepted by all players: in several cases, operators preferred to scale back activity or bring forward their summer shutdowns. Upon returning from the holidays, August quotations remained stable, a stability that also marked the early days of September, as attempts by some sellers to push prices higher found no response from steelmakers.
In Italy, scrap availability remains limited, affected by lower industrial production in a weak economic environment. Nevertheless, mills resumed activity with stockyards already well supplied, while the use continues of semi-finished products from China and the Middle East - billets and slabs - supported by the favorable exchange rate of the dollar. Against this backdrop, September’s outlook remains uncertain: only by mid-month will the market be able to show a clearer trend.
The international scenario shows little brightness. Turkey recorded overall price stability, with limited volumes and a brief positive peak at the end of July quickly absorbed. Asian markets mirrored this pattern, with slightly sharper swings. In Europe, Germany experienced a still positive July in terms of demand, though accompanied by slight price declines, while in August activity fell sharply with further drops. In France, prices stayed broadly stable except for sporadic €10/mt cuts, but long summer stoppages kept demand and transactions muted. In Spain, July brought a few deals at unchanged prices, while August was marked by near inactivity. In the US, weakness in the finished products segment is fueling expectations of a further $10-20/mt decline in scrap prices.
The pig iron segment offered no surprises in July and August: prices remained stable or slightly lower, with good material availability, including alternatives to Russian origins. Italian demand remains weak, while in Europe demand appears somewhat stronger, though price levels do not meet buyer expectations and no new contracts were reported. In Turkey, some parcels of Russian pig iron were sold at about $5/mt lower, while in the US recent spot deals for high-phosphorus Brazilian pig iron closed at around $400/mt FOB, with major buyers seemingly ready to renew interest in the coming weeks.
The stainless segment also confirmed a weak trend. In July, foundries reduced purchases ahead of the summer break, keeping stocks at a minimum and scheduling longer shutdowns than in previous years, typically three to four weeks. Demand stayed muted and tied almost exclusively to immediate needs, while uncertainties related to US-EU tariffs - despite the August 21 agreement - continue to weigh on sentiments. On the logistics side, delays in European intermodal transport due to railway works worsened the situation further, extending delivery times and clouding mid-term planning visibility.
Hematite and nodular pig iron remained sluggish. Buying interest focused on immediate requirements, while summer shutdowns compressed volumes even more. Availability was not lacking, but operators preferred to take a cautious stance.
The ferroalloys market, finally, recorded sharp increases between July and August, fueled by speculation about new safeguard measures from the European Commission. However, the last week of August and the first days of September saw a reversal, with prices returning to more balanced levels.
Overall, the scrap and raw materials market remains fragile and is awaiting clearer signals. Demand for finished products continues to show weakness, the dollar remains a decisive variable, and the geopolitical environment remains uncertain. Under these conditions, operators are cautious, with limited trading and a wait-and-see approach likely to mark the coming weeks as well.