In September, the Italian domestic scrap market switched from an uptrend in the ten days of the month to a downtrend in the second half of the month, according to a press note by Assofermet, the Italian association of traders of iron, steel, non-ferrous metals, ferrous scrap, hardware and similar goods. The market is still weak due to the willingness of scrap traders to sell off their reserves, as usually happens during downtrend periods.
Assofermet says there is much uncertainty both on the customer side and on the supplier side in the scrap trade. The former are booking just-in-time material amid the current uncertainty, while the latter are not managing to achieve reductions in purchase prices similar to the reductions they have made in their sales prices.
During the current month of October, scrap quotations should stabilize while supply and demand reach equilibrium. Assofermet states that the Italian scrap market moved into a high-volatility phase in late August and September, with increased difficulties witnessed in price negotiations.
In the European markets, where scrap prices are set on a monthly basis, offers to Italy have decreased following falls recorded in the markets of origin. Meanwhile, prices in Europe overall are still above Italian prices.
Finally, in September about 51,200 mt of pig iron and no volumes of scrap were imported via Port Marghera, Venice.