In February, the scrap market in Italy saw a price increase of between 10 and 15 euros, driven by steady demand from steel mills, according to Assofermet, the association representing Italian distributors of scrap, raw materials and steel products. However, ongoing economic uncertainty has led many companies to sell in order to avoid potential trend reversals, even though such a scenario seems unlikely for now. Steel mills have tried to contain costs by increasing purchases of sheared scrap and demolition materials, while busheling scrap remains in short supply. Scrap stockpiles at recovery companies remain low, whereas steel mills are holding medium to high inventory levels. Rising energy costs continue to put pressure on the sector, and market sentiment for March remains uncertain.
At the international level, Assofermet reports that the Turkish market has experienced a price increase of approximately $25/mt since January, with further gains expected in the coming weeks. Similar trends have been observed in Europe: in Spain, prices have risen by around €20/mt, in France by €10/mt, with peaks of €15/mt, while Germany has recorded increases ranging from €5/mt to €10/mt. The Asian markets have shown a more volatile trend, with price fluctuations being relatively modest.
The stainless steel market has experienced mixed trends. After an initial price increase, quotations dropped due to production shutdowns and temporary layoffs. According to Assofermet, some operators have stockpiled material in anticipation of future price hikes, while the Indian market has recorded a sharp decline, partly due to the euro/dollar exchange rate. The sector is being influenced by several critical factors, including rising energy and raw material costs, inflation, geopolitical tensions, and trade policies, particularly in the United States.
The reduction in Russian supply has shifted demand for pig iron towards Ukrainian and Brazilian sources, with prices ranging between $450/mt and $460/mt and further increases expected. The hematite iron market has been volatile, with a slight rebound in transactions only in the last week of February. Logistics issues in Europe, exacerbated by the reduction in available transport and overbooked freight trains, have contributed to delivery delays.
Foundries continue to report weak demand for ductile iron, limiting purchases to immediate needs. While current availability remains sufficient, Assofermet warns that supply could tighten if demand returns to normal levels. In the ferroalloys sector, manganese alloys have remained stable with slight increases, while noble ferroalloys have recorded price hikes for FeMo and FeW.